Do you know where your Superannuation entitlements will go if you die?

By Pamela Wardle, Senior Solicitor

Superannuation entitlements, particularly death benefits, (Entitlements) may constitute one of the largest assets you have upon your death.  Therefore, it is important to understand how the trustee of your superannuation fund (Trustee) is likely to pay your Entitlements.

The Trustee may pay your Entitlements to a spouse, a child, a financial dependent, a person with whom you have an interdependent relationship or your estate.

You may notify the Trustee of your intentions for your Entitlements by submitting a written nomination but you must satisfy specific criteria for your nomination to be binding on the Trustee.  For example, you must nominate specific people or groups of people and, for most funds, you must update the nomination every three years.  If your nomination is binding, the Trustee must pay your Entitlements to the person or people you nominate.  However, if you fail to satisfy the criteria, the Trustee may consider your nomination but may pay your Entitlements where it determines is most appropriate.  Unfortunately, this payment is not often paid where you want or intend it to be paid.

Contact your superannuation fund to obtain the specific requirements for your binding nomination or contact us for further information on your options regarding your Entitlements.