Nominating beneficiaries

Make sure your super ends up in the hands of the person – or people – you want it to

Unlike directly owned property or shares, super doesn't automatically form a part of your estate if you pass away. Instead, your super benefits are paid out under the rules of the super fund.

You can nominate who you want to receive your super, but not all nominations are the same. The table below compares non-binding and binding nominations. It’s important to know the differences, because the type of nomination you have in place determines how your super benefit is paid out.

Binding vs non-binding nominations

Non-binding nominations

Binding nominations

Provide certainty with binding nominations

A binding death benefit nomination is a legally binding nomination that allows you to advise the trustee who is to receive your super benefit in the event of your death.

The benefits of binding death nominations include:

• You can be reasonably certain that the person, or people, you nominate will receive your super and in the proportion that you specify
• Your beneficiary, or beneficiaries, will gain access to your super money more quickly, as they won’t have to wait for the trustee to determine who it should be distributed to.

In order for a nomination to be binding, it must be 'valid'. One of the requirements of validity is that only dependants can be nominated. For the purposes of super law, a dependant includes:

• a spouse (including defacto or same-sex)
• children of any age, including step-children, adopted or children from previous relationships
• someone who is financially dependent on the member
• someone in an interdependency relationship with the member
• a Legal Personal Representative (ie on behalf of their estate).

Review your nominations today

When was the last time you reviewed your nominated beneficiaries? Make sure your nominations are up-to-date.

• Login to your account to check your nominations.
• Contact our ClientFirst.
• Speak to your financial adviser.