No one likes to think about their early demise. It’s morbid, I get it. However when someone does pass unexpectedly, they can leave behind a mess that is easily preventable.
Did you know that many super funds have built in life and TPD insurance? This means that if something happens to you, not only does your account balance get paid out, but your life insurance gets paid out as well. This could be hundreds of thousands of dollars that is going to be passed to someone upon your death.
Have you nominated someone to receive this?
You can nominate a spouse, a child under 18 or a person who is financially dependent on you. You cannot nominate adult siblings, parents (if they are not financially dependent) or adult children (unless they are financially dependent). If you don’t have a child, a spouse or someone who is dependent on you then you can nominate your Estate (your Will in other words).
Do you have a Will?
If not, then get one!
Within your super you can make a ‘binding’ nomination or a ‘non-binding/discretionary’ nomination. A valid binding nomination means your benefit will generally be paid faster and directly in accordance with your wishes. A binding nomination expires after 3 years so you have to keep it updated. You don’t want your benefit paid to your ex-spouse for example because you failed to update your nomination!
A non-binding nomination indicates your wish to the trustee but the Trustee ultimately decides how to distribute your super amongst your depends – even if it may not be what you had in mind! People can challenge this decision (just like a Will) so if you want your benefit paid in accordance with your instruction then a binding nomination is the way to go.
So when you get your next super statement in the mail, have a look at your nominated beneficiary. If it’s blank, invalid or you don’t like who is nominated then complete a new nomination form! A valid nomination is simple to make and it will save a lot of time and heartache if the time ever arises.