Why Should You Consider Making a Superannuation Death Benefit Nomination as Part of Your Estate Planning?

It may come as a surprise but, despite possibly being one of your most valuable assets, superannuation benefits do not automatically form part of your estate. As such, the benefits may not be automatically distributed in accordance with your wishes.

What is a binding death benefit nomination?

A death benefit nomination gives notice to the superannuation fund’s trustee about the payment of the member’s benefits on their death. There are different types of death benefit arrangements, but a binding nomination means the trustee must pay the benefits as nominated. If you do not make a nomination, the trustee will pay the benefits to your estate or use discretion to determine who is eligible to receive it.

Unsurprisingly, there are several formalities and conditions to be met to make the nomination binding. For example, in addition to the notice having to be signed and witnessed, each death benefit nominee needs to be either a dependant or legal personal representative.

Death benefit nominations can be an important tool in estate planning. There is much to consider, and so it is important to discuss your intentions with experienced estate planning lawyers.

Contact our Estate Planning Lawyers in Sydney, NSW

The estate planning experts at Szabo & Associates Solicitors can help to determine if your circumstances require a death benefit nomination in order to reflect your wishes for your assets. Please contact us on 02 9281 5088 or complete the online contact form.