You might be surprised to know that, unlike your other assets and belongings, your superannuation is not necessarily covered by your Will in the event of your death, due to the money being held in a trust. Your Will only covers giving away your assets that you owned in your name. In the case of you not having a Will, your super benefit will be distributed at the discretion of the trustee.
Unless you specify who you want to receive your superannuation when you pass away, your super fund trustee will decide. For this reason, it is a good idea to nominate who it is that you want to receive your super. The way to do this is by creating either a binding or non-binding nomination of beneficiary to your super fund trustee.
When considering a binding death nomination, keep in mind that the death benefits must be paid to someone deemed to be a “dependant” or your legal personal representative. Another thing to consider is that even if you do nominate someone to receive your superannuation, the nomination can sometimes lapse.
It is important to note that not all super funds offer the option of creating a binding death nomination.
For more information on binding death nominations please contact us at Wollerman Shacklock on 9707 1155.