In this guide
When you have a valid Will in place when you die, most of us assume our executors will take care of all the necessary paperwork and just distribute our assets to our chosen beneficiaries in the proportions listed in our Will.
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.
If you want to ensure you have a say in who gets your super when you die, you need to learn what to do to ensure your wishes are respected.
Need to know: A recent decision by the High Court has changed the rules in relation to using a binding death benefit nomination (BDBN) if you are a member of an SMSF. Check out the section below on BDBNs 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 who gets to make the decision about who receives your super death benefit. The trustee has a broad discretion when it comes to who your death benefit is paid to and it may not be the person you would have selected.
