ARE YOU IN CONTROL OF YOUR SUPER? Take control with a Binding Death Nomination.
***Compulsory Reading for those with Super***
• Superannuation and death benefits paid under a super policy (like death insurance) do not automatically form part of a deceased person’s estate (so they don’t necessarily go to the beneficiaries listed in a Will).
• The only way you can be 100% certain your super and death benefits pass to the people you want them to pass to when you die is via a Binding Death Nomination, but there’s a couple of ‘catches’.
• The first catch is that you must submit a fresh Binding Death Nomination every three years.
• The second catch is that in order for your Binding Death Nomination to actually be ‘binding’ upon your super fund, the person(s) you nominate as your beneficiary must be either your legal personal representative (the executor/administrator of your estate) or your dependant (spouse, child, interdependent or a person who was financially dependant upon you when you died).
• Although most people nominate beneficiaries in their super policies, the vast majority of people don’t have a Binding Death Nomination in place, and don’t realise that without a Binding Death Nomination, their super fund will actually have the power to decide who their death benefits are paid to upon their death.
• If you’re not sure whether you’ve got a Binding Death Nomination in place, call your fund and ask the question.
This article was written by Townsville estate lawyer, Kyle Barram on 23 June 2016.