If there’s money in your super account when you die, or you have death insurance through your super, there are specific rules that apply to that money. Super isn’t automatically included in your estate or will, unlike many other valuable assets.
However, if you make a valid binding death nomination, you can choose who gets your money. Nominating your beneficiaries is the best way to let your super fund know where you want your money to go when you die. Without a valid beneficiary nomination, your super fund decides who gets your money – meaning it may not get distributed the way you would have wanted.
You can’t just nominate anyone though – it often surprises people, but superannuation law gives you a limited number of choices. Eligible beneficiaries can be:
Your spouse (whether you’re legally married or de facto)
Your children, including adopted and stepchildren.
A person with whom you have an interdependent relationship at the time of your death. ‘Interdependent relationship’ means a close personal relationship between two people who live together, where one or both provides financial, domestic and personal support to the other.
Your legal personal representative – this is the person you name as your executor in your will. Effectively, this means your estate is the beneficiary – so if you do this, it’s important to keep your will up to date, particularly if things in your life change.
When life changes, the people depending on you financially may change too – a new relationship, the end of a relationship or a new baby can all affect your beneficiary choices. For example, getting divorced or remarried could impact an existing beneficiary nomination so it’s important to review things when life takes a new turn.
There are several types of beneficiary nomination, including:
Binding: you provide formal written direction to tell your super fund who you want your account balance to be paid to so that it’s legally binding. Binding nominations generally expire three years from the date they are signed.
Non-binding: you nominate who you’d prefer your account balance to be paid to. Your super fund will take this into consideration but ultimately it determines who should be paid, taking into account relevant laws.
For more information about the beneficiary nomination process, visit our beneficiaries page.
It’s a good idea to regularly review your beneficiary nominations to ensure they are up to date with your current circumstances and provide peace of mind that your super will be distributed according to your wishes.
We’re here to help so if you’d like more information on how to nominate beneficiaries, call our Member Services team on 1300 300 820, Monday to Friday 8:30am to 5pm, or email memberservices@visionsuper.com.au.