Superannuation and My Will.
Do you know that superannuation does not automatically fall within your estate assets available for distribution pursuant to your Will?
This is because the trustee of the superannuation fund has the legal discretion to pay your superannuation entitlements including any related insurance policy, together known as your “death benefit” to your dependents under the contract of insurance.
Some superannuation companies allow members to make nominations as to who the death benefit should be paid to.
“Non-binding” nominations are essentially your “wish” as to where you would like your death benefit to be paid.
“Binding” nominations are binding on the trustee and removes the discretion from your superannuation trustee. There are strict rules in respect of binding nominations with most lapsing to non-binding nominations after three years.
There are also strict legal requirements that must be met for a binding nomination to be valid such as being witnessed by two adult witnesses.
You should speak with your Financial Adviser to ascertain whether they will accept a binding nomination.
If you would like more information regarding superannuation and your estate planning, please call our experienced Estates Solicitors on 1300 HATZIS (1300 428 947) (1300428 947) or email us at firstname.lastname@example.org.