Do you know who will inherit your super?

Many people don’t, but by completing a binding nomination form you can determine who will receive your superannuation benefit when you die. 

Without this nominationwe may be left making assumptions on your behalf about where you would have wanted your super to go. This may lead to undue stress and confusion for family members and loved ones left behind.  

What is a binding nomination?  

This is a legally binding document and having a nomination in place means your super will be paid out to your loved ones much faster. If you make a valid binding death benefit nomination (BDBN), the Trustee must distribute the benefits on your death in accordance with the BDBN, provided the nomination is still valid at the time of your death.

How long do they last? 

Binding death benefit nominations with Active Super last for three years (unless a member amends or revokes their nomination within that time), but it’s important to know what makes them valid.  

What makes them valid? 

  • Completion of the Active Super Binding Death Benefit Nomination form 
  • Signed and dated by hand (the rest of the form can be typed or handwritten using capital letters and a black pen) 
  • Nomination of (an) eligible beneficiary/ies 
  • Witnessed by two people (on the same date) who are not mentioned as beneficiaries on the form and are over the age of 18. They also need to complete this part by hand using capital letters and a black pen. 

Who can you nominate? 

Each person you nominate must be one or more of the following at the time of your death: 

  • Your spouse;  
  • Your child or children;  
  • Any other person who is financially dependent on you;
  • Any other person with whom you had an ‘interdependency relationship’; or 
  • Legal personal representative(s). For the purposes of a BDBN, a legal personal representative is taken to be someone who holds grant of probate or letters of administration.   

Before making your nomination:  

  • Check your beneficiaries are eligible to be nominated. 
  • If you’re nominating a legal personal representative, make sure your will is up to date. 

What about tax? 

Super has different tax components and this means that the tax may differ, depending on who the beneficiary is and whether they’re a tax dependant or not.  For instance, this can vary if the individual is a spouse, minor child, another super dependant, or an end beneficiary through your estate.  Learn more.

What are some other Estate Planning considerations? 

As well as making a valid nomination, it’s important to consider other estate planning matters. You can speak to a legal professional for more information on: 

  • Wills 
  • Powers of Attorney 
  • Guardianships 

What else should I consider? 

Remember to consider the relevant Product Disclosure Statement (PDS) and read our fact sheetsOur Binding Death Benefit Nomination form also details very important information about validity within the ‘Notes’ section.  In relation to tax, it’s important to seek legal advice to decide what’s right for you.  

Any more questions? Feel free to contact us.

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