Your superannuation is probably one of your largest assets and very few people give proper consideration as to what happens to your Super in the event of your death. The payment of your Super is governed by the terms of the Trustee of the relevant Superfund.
There are few options:
Binding Nomination – You provide formal written direction to your Superfund directing them who you want your Super balance paid to. The Trustee is legally bound to pay to nominated beneficiary. A binding nomination comes into effect from the date it is accepted by your Superfund and it expires three years from the date you sign the form.
Non-Binding Nomination – The Trustee of your superfund is not legally bound to pay to nominated beneficiary. They may consider your nomination but has will follow their own discretion as to who they will pay including your dependants.
Reversionary Pension: If you nominate a reversionary beneficiary, this person will receive regular income payments from your account in form of pension until the balance reaches $0 as oppose to one lump sum payment.
Who can you Nominate?:
The nominated beneficiaries can be:
your spouse or partner
other financial dependants (such as someone who relies on you financially)
your estate or legal personal representative (This is not available for reversionary nominations).
By Ajay Singh – Principal Solicitor & Accredited Mediator – LL.M (Applied Law)