It can be a difficult topic and something that may not be front of mind, but have you thought about who you want your super to go to in the event of your death?
Many people assume that their super entitlements are automatically included in the value of their estate and will be paid out via their Will. However, there’s strict legislation in place that outlines who can receive super benefits after someone has passed away. You can make a separate nomination to let Club Super know who should receive your super and any insurance payments, known as a ‘death benefit’, in the event of your death.
Did you know?
Only 5% of Club Super members have a valid binding or non-lapsing binding nomination in place. 50% of Club Super members have a preferred or expired binding nomination in place, while 45% of members have no nomination in place at all.
Not having a nomination in place can lead to lengthy disputes, added stress and long processes to determine who should receive a death benefit.
By having a valid binding nomination in place, the Fund is required to pay out your death benefit to your nominated beneficiary/ies, giving you peace of mind.
If you have a preferred nomination, an expired or invalid binding nomination (or no nomination at all) in place at the date of your death, the Trustee will consider who you chose, but ultimately, they are legally responsible for deciding who to pay your benefit to after you die, and they have to follow relevant superannuation laws.
There are strict rules regarding who you can nominate as a beneficiary. Your death benefit can generally only be paid to your dependants, Legal Personal Representative or your estate. Under superannuation law, your dependants are:
- a spouse (including de facto spouse or same sex partner);
- a child of any age or;
- any person with whom you have an interdependency relationship.
More information about nominating a beneficiary can be found in our Additional information – Nominating a beneficiary document.
Updates to your nominations can be made at any time.
A ‘standard’ binding nomination is only valid for three years, so it’s important to renew your nomination before it expires for it to remain valid. Once it becomes invalid, your nomination will no longer be binding on the Trustee and will be treated as a preferred beneficiary nomination.
A non-lapsing binding nomination does not expire after three years and remains in place until it is revoked, amended or becomes invalid. Although you won’t need to renew your nomination every three years, it’s even more important that you regularly review your nomination to make sure it reflects your wishes and current circumstances.
You can also speak to a Club Super Financial Planning (FP) Financial Planner who are available to assist with beneficiary nominations for your Club Super account.1 Simple advice about beneficiary nominations for your Club Super account is considered Intra-fund advice and is covered by your Club Super membership at no additional cost.
We’re right beside you
If you have any questions about binding nominations, or would like to speak to a Club Super FP Financial Planner, call us on 1300 369 330 between 8:30am – 5:00pm Monday – Friday or email us at firstname.lastname@example.org.
1Club Super Financial Planning advice is provided by My Super Future Pty Ltd (ABN 38 122 977 888) Australian Financial Services Licensee (AFSL no. 411440). My Super Future Pty Ltd is authorised to provide personal financial advice. The Trustee is not responsible for, and does not accept liability for the products or services or actions of My Super Future Pty Ltd. You should use your own judgment before taking up any product or service offered by My Super Future Pty Ltd.