In this guide
Those of us who have a valid Will in place often assume our executors will take care of all the necessary paperwork and distribute all our assets, including super, to our chosen beneficiaries as we have instructed.
But when it comes to your super, it’s not that simple. Your Will doesn’t automatically decide who gets your retirement savings. It’s up to the trustee of your super fund to make the final decision, and without the right guidance from you the process can be prolonged and distressing for your loved ones.
To ensure you have a say in who gets your super when you die, and that your wishes are carried out quickly, you need to make the most effective beneficiary nomination for your circumstances.
So how do you go about doing that?
Need to know: A 2022 decision by the High Court has changed the rules in relation to using a binding death benefit nomination if you are a member of an SMSF. Check out the section below on binding nominations in an SMSF for more details.
You don’t own your super assets
When you make a valid Will, it governs the distribution of the assets you own personally, like your house, car and bank accounts. What a lot of people don’t realise is that you don’t own your super account personally. It’s held in trust for you by the trustee of your super fund.
Learn about super fund trustees.
Under Australia’s super laws, the trustee of your super fund is the one makes the decision about who receives your super death benefit. .
