One of the most important decisions you will need to make when joining a super fund has nothing to do with where your money is invested. It revolves around the question of who to nominate as the beneficiary of your superannuation when you die. It is a critical decision, because if you don’t get it right your savings could be given to someone other than your preferred beneficiary.
Non-binding nomination – The beneficiaries you nominate are normally only a guide – the trustees of your super fund will have the ultimate discretion as to who will receive your super. They will take into consideration any nomination of beneficiaries that you have made but are not bound by your request.
Binding Nomination – This is a nomination that the trustees are obliged to follow. Under superannuation rules, you may only nominate a spouse, child, someone who you held an interdependency relationship with, or a financial dependent.
Legal Personal Representative – If you want your superannuation to pass to someone else, such as a friend or charity, you should consider nominating your estate as the preferred beneficiary of your superannuation entitlements. Your superannuation will then be distributed according to the terms of your will. You should speak with a solicitor to ensure your will is up to date and structured correctly.
