Your beneficiary is the person you nominate to receive your superannuation benefits in the event of your death. Generally your beneficiary must be a dependent, such as your spouse, de facto partner, child or any person who relies on you financially. Nominating a beneficiary can be an important step to ensuring your money goes to the people you want it to when you die.
Nominating a beneficiary
Your super fund should give you the option to nominate a beneficiary. You can nominate more than one person and specify the percentage of your benefit you would like each person to receive. This nomination can be either binding or non-binding.
If you’re thinking about making a binding nomination, contact your fund for more information
If you make a non-binding nomination, the trustee of your super fund will consider that nomination, but is also legally obliged to determine who your dependents are and any other relevant considerations at the time of your death. Your benefit will be paid to those considered to be financially dependent on you and in some cases this will not be the person or people nominated.
If you make a binding nomination, the trustee of your super fund is required, by law, to pay your benefit to this person/s in the event of your death, as long as the nomination is in force and valid at the time of your death. Not all funds offer binding nominations so you should check this out with your fund. This information can usually be found on the fund’s website and product disclosure statement. Otherwise, you can always give them a call to find out if they offer binding nominations.
To make a nomination, most funds require you to fill out a simple form although many also now allow you to update this information through their website. If you’re thinking about making a binding nomination, contact your fund for more information, as it must meet certain conditions to be considered valid.
Generally if you have no dependents eligible to receive your benefit and do not make a nomination, your super benefit will be paid to your legal personal representative for inclusion in your estate.
Changing beneficiaries
It is important you keep your beneficiary nomination up-to-date to ensure it remains valid and effective, especially if your family or marital circumstances change.
You can usually change your nomination at any time in writing to your fund.
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