<< Back to Blog

What happens to your super when you die?

Binding Nominations

Posted on

Most people are familiar with the idea of leaving the house, the boat or the stamp collection to someone in (or sometimes outside of) their family through their will. But what about superannuation – what happens when you die and how can you make sure that people aren’t unreasonably disappointed?

Your estate

The assets that you own form your estate and are distributed according to your will.  You can choose to give your assets to anyone.  If you don’t have a valid will, your assets are distributed according to legislation.  Your assets are property you own personally like bank accounts, shares, managed funds, real estate and lifestyle assets (such as cars and boats).  Assets held by companies or in trusts do not form part of your estate.

Your super

Although superannuation is held in your name it’s not yours – the super fund trustees hold it in trust for your benefit.  If you die, superannuation legislation requires them to pay the money to your dependants.  This means to your spouse, your children, someone who is financially dependent on you or someone living in an interdependent relationship with you.

The aim of the relevant legislation is to enable the trustees to pay out the super quickly on the production of a death certificate.  In most cases, this is quicker than finalising your estate.  Sadly, in some cases, family disputes mean that even a superannuation payment is delayed.

What can you do?

It is important to know that the super fund trustees should consider the intentions of your will in making a decision, so make sure you have one and that it is up-to-date. You might also be able to instruct the trustee directly of what you want to happen, under a “binding nomination” or similar facility.

It is also worth thinking about telling your beneficiaries what you intend, as this will give them the chance to prepare for the outcome rather than be surprised at a difficult time. And, as always, seek advice on a tailored plan for your personal circumstances.

<< Back to Blog

Contact Us

p. +61 7 3832 5777
f. +61 7 3832 5778
e. admin@dolfinwise.com.au

The Right Start
Bronnie Abraham recently featured in the Financial Planning Magazine as the latest winner of the Gwen Fletcher Memorial Award for being the highest achiever in the CFP Certification Unit.
Continue reading...

Bronnie Abraham wins Gwen Fletcher Memorial Award
Dolfinwise financial planner Bronnie Abraham is the winner of the latest FPA Gwen Fletcher Memorial Award
Continue reading...

Planning on Investing? Have you considered a Super option?
Dolfinwise adviser Jason Bragger has been selected as the Superannuation Expert in the Financial Planning Association's "Financial Planning Week". Read Jason's Super & Investment Blog here.
Continue reading...

Dolfinwise announce merger
Dolfinwise is proud to announce the merge of Cameron Renshaw & Associates with Dolfinwise commencing 1st June 2013. Financial adviser Howard Querido will join the merged firm
Continue reading...

See More
Financial Planner Dolfinwise © 2017 | Legal Notes | Useful Sites | Web Design Brisbane by TwoCents Group Intelligent Advice