This guide explains general concepts for educational purposes. It is not financial, tax or legal advice, or a recommendation to buy, sell, hold or change a financial product or strategy. It does not take into account your objectives, financial situation or needs. Rules, caps, thresholds and product terms can change. Check the current official information and obtain advice appropriate to your circumstances before making a financial decision.
Your will does not control every asset
Super is held within a fund, so it does not automatically form part of the assets distributed under your will. Fund rules, superannuation law, valid nominations and pension arrangements determine how a death benefit can be paid.
That makes a super nomination a distinct part of estate planning. Writing a will is not a reason to assume the super arrangements are complete. Check each account separately and bring the information to your solicitor and adviser.
Understand the nomination your fund offers
A non-binding nomination indicates your wishes but generally leaves the trustee to determine payment under the relevant rules. A valid binding nomination can direct the trustee, subject to legal and fund requirements. Some nominations expire and others may be non-lapsing.
Forms can have witnessing, signing, beneficiary and allocation requirements. An incomplete or outdated form may not operate as intended. Obtain confirmation from the fund and retain the record, rather than assuming that entering a name online has the same effect as every other nomination type.
Check eligibility and tax separately
Not everyone you would like to benefit can necessarily receive a super death benefit directly. Eligible super beneficiaries and the legal personal representative have particular meanings. The definition used for tax treatment is also not identical to the eligibility test for receiving a payment.
Where the intended recipient is an adult child, a financially dependent person or an estate, the payment and tax consequences deserve careful advice. The right arrangement depends on the family circumstances, benefit components and intended distribution, not just the size of the account.
Review after life and account changes
Marriage, separation, a death, children becoming adults and a move between funds can change what is appropriate. A new pension may also involve a reversionary beneficiary decision. Do not assume a nomination transfers unchanged when your account arrangements change.
Keep the super instructions aligned with your legal documents and broader intentions. Your financial adviser can identify the account arrangements to review, while your solicitor advises on the estate and prepares the required legal documents.