Completing a valid nomination means your superannuation benefit should be distributed to the people you choose, and not your estate, on your death.
Who can you nominate?
Under superannuation law, you can nominate the following:
- Your spouse or de-facto spouse, including same sex partners.
- Children including step and adopted children, children of your spouse and other children within the meaning of the Family Law Act 1975.
- Individuals who are financially dependent on you at the time of your death.
- Your legal personal representative (either the executor under your will or a person(s) granted letters of administration for your estate if you die without having left a valid will.
- Someone in an interdependency relationship to you. This is a close personal relationship between two people who live together, where one or both of them provide for the financial and domestic support and personal care of the other. This type of relationship may still exist if there is a close personal relationship but the other requirements are not satisfied because of some physical, intellectual or psychiatric disability.
Why can’t you nominate other family or friends?
The law only allows you to nominate individuals who are financially dependent on you or have an interdependency relationship with you at the time of your death. However, you can choose to have your superannuation benefit paid to your estate where you can nominate your friends and/or other family members in your will to receive these funds.
Types of Nominations
A non-lapsing nomination which is binding on the Trustee. This ensures that your superannuation benefits are paid as you have directed as long as the nomination is and remains valid.
A nomination subject to Trustee discretion. The Trustee will decide who receives your superannuation benefit and will consider your preferred beneficiaries.
The Trustee will decide who receives your superannuation benefit. This means that your superannuation benefit could be paid to people other than those who you wish to receive that benefit. Please note that contrary Court orders may override your nomination.
Where can you check your beneficiary nomination?
Your beneficiary nomination details typically will be confirmed each year in your Annual Statement and you may also be able to view your statement on your superannuation plan’s website.
What do you need to do?
If you’d like to make a nomination, please read your superannuation plan’s nomination of beneficiary form carefully then complete the form and send it back to your superannuation plan. Before you do, please ensure that you and the witnesses initial and date any mistakes otherwise the form will be invalid.
Nomination of beneficiary forms can typically be downloaded from your superannuation plan’s website or you may have received a copy in your superannuation plan’s welcome pack. You should regularly review your nomination to make sure it reflects your wishes and personal circumstances.
The taxation rules relating to death benefits are complex and different taxation treatments may apply depending on who receives your superannuation benefit. Please seek advice from your tax adviser.
Call Invest4Life on (07) 5456 1355 to discuss your superannuation and estate planning needs with our Financial Advisers.
Disclaimer: This information has been produced by Australian Unity Personal Financial Services Ltd (‘AUPFS’) ABN 26 098 725 145, of 114 Albert Road, South Melbourne, VIC 3205, AFSL & Australian Credit Licence 234459. Any advice in this document is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making investment decisions. AUPFS is a registered tax (financial) adviser and any reference to tax advice contained in this document is incidental to the general financial advice it may contain. You should seek specialist advice from a tax professional to confirm the impact of this advice on your overall tax position. Nothing in this document represents an offer or solicitation in relation to securities or investments in any jurisdiction. Where a particular financial product is mentioned, you should consider the Product Disclosure Statement before making any decisions in relation to the product and we make no guarantees regarding future performance or in relation to any particular outcome. Whilst every care has been taken in the preparation of this information, it may not remain current after the date of publication and AUPFS and its related bodies corporate make no representation as to its accuracy or completeness. Published: February 2017 © Copyright 2017