Your superannuation can be one of your largest assets and accordingly it is important that your estate plan reflects your wishes on how you want this to be distributed after your death. Unlike your other assets, your superannuation is not usually covered by your Will. The reason for this is that your super is held in trust for you by the Trustee of your super fund.
This means that you should consider the different options available to you to ensure your superannuation is distributed in accordance with your wishes. It is always advisable to seek advice from an estate planning lawyer on which option will be best suited to your needs.
One potential option that you may wish to consider is making a binding nomination. A valid binding nomination creates a legally binding instruction on the Trustee of your super fund to distribute your super to the beneficiary or beneficiaries that you nominate, usually dependants or your estate.
For this type of nomination to be valid it must have been made within the three years prior to your death. As a result, it is very important that you review and renew or update your nominated beneficiary or beneficiaries on this basis to avoid the nomination becoming invalid.
Having to reissue your binding nomination every three years also serves as a good reminder to update your Will and to check that your estate plan continues to be structured in an effective way.
Many superannuation funds also allow for you to make a ‘non lapsing’ nomination. Your estate planning lawyer can examine the trust deed of your super fund to determine if this option is available to you.
You may also not be aware that the Trustee of your super fund has the discretion to pay your superannuation benefits to a dependant, as opposed to a non-dependant. If you have any queries about the proposed nomination and the effect it may have on the distribution of your estate, you should talk to an estate planning lawyer.
Speaking with an estate planning lawyer can help guide you on if the binding nomination is an appropriate option for your circumstances or if an alternative option would be better suited for your estate plan.
If you would like further information, please contact an estate planning lawyer on 9635 7966 or through the website www.matthewsfolbigg.com.au
