Choose where your super goes

As you may or may not know already, your super is not part of your estate which means it’s not covered on your will. Your superannuation balance is actually distributed by the trustee of your nominated super fund.

In the event of your death (knock on wood), you can ensure the trustee takes your wishes into account when deciding how to distribute your superannuation.

Managing your super wishes

If you haven’t heard the term death benefit nomination, that’s exactly what you need right now. It’s a legally binding nomination that allows you to advise your super trustee on who will receive your super benefit. Before you drag your feet and think how much time you’re gonna spend doing this, you should know it’s just a form which you need to submit to your super fund!

But what type of death benefit nomination?

There’s a few different options that you can select from according to your personal situation:

Non-binding nomination

This type of nomination means the trustee of your super fund considers the benefit nomination you have made. The trustee ultimately determines which of your beneficiaries receives your super and in what proportions.

Binding nomination (BDBN)

A BDBN means that the trustee of your super fund must pay your super death benefit to the beneficiaries that you nominate, in the proportions that you have listed. This nomination overrides the super fund trustee’s discretion over how who your super goes to. BDBN’s tend to lapse after three years unless renewed and SMSF’s you will need to check if the trust deed allows this type of benefit nomination.

Non-lapsing binding nominations

A non-lapsing binding nomination works in a similar way a BDBN, however it never expires and remains in place until cancelled or replaced with a new benefit nomination.

Reversionary nomination

Some super funds allow owners of super income streams to make a benefit nomination. This way, the income stream reverts to a particular beneficiary.

If you’re still unsure on how to proceed, our wonderful team is always here to give you a hand. You can send us an email or give us a call.