Securing Your Superannuation Investment

Establishing Certainty and Peace of Mind

Perhaps, like many people, you assume that when you die your super will become part of your estate and will be distributed according to your will. But, this is not necessarily the case. Unless you have completed a valid binding death benefit nomination, or the payment of the death benefits is otherwise fixed, the trustee of your superannuation fund will have discretion as to how your super death benefits will be paid.

Certainty and peace of mind
Having a binding death benefit nomination in place gives you certainty and peace of mind (especially if you have a complex family structure, such as a blended family) because the trustee of the super fund is bound by the nominations you make regarding the payment of your death benefit. A binding nomination can also help speed up the benefit payment, which could be important if someone is relying on those funds.

Nominating a beneficiary
There are rules around who you can nominate; you can’t just pass your super to anyone. Your beneficiary has to be a ‘super dependant’. Commonly, the fund rules will allow you to nominate one or more of the following:

  • Your spouse – a person legally married to you or a de facto spouse who is living with you on a genuine domestic basis – this can include opposite and same sex spouses.
  • Your children or your spouse’s children – including adopted, foster, step or ex-nuptial children (although care must be taken if nominating a step child).
  • A financial dependant – a person who is financially dependent on you to maintain their normal standard of living, whether or not they are related to you.
  • A person in an interdependency relationship with you – this
    is evidenced by a close personal relationship, if you are living together, where one or each of you provide the other with financial support and one or each of you provide the other with domestic support and personal care. This relationship can also exist if a close personal relationship exists but the other requirements are not satisfied because of a physical, intellectual or psychiatric disability.
  • Your legal personal representative – which means the executor of your will or administrator of your estate.

Don’t forget to renew your binding death benefit nomination every three years (where required by the fund’s rules or legislation) or whenever your circumstances change.

Need to seek further information regarding nominating a beneficiary for your super? Police Bank have chosen Bridges as our preferred Financial Planners. A Bridges Financial Planner can review your superannuation, investments and entitlements and decide what strategy is appropriate for your circumstances. For more information or to arrange a complimentary, obligation free initial consultation near you, visit our Financial Planning page.