If you do not nominate a beneficiary for your superannuation, the distribution of your superannuation benefits upon your death will depend on the rules of your superannuation fund and relevant legislation. Here is what generally happens:
- Trustee’s Discretion: If there is no valid binding nomination, the trustee of your superannuation fund typically has the discretion to decide how to distribute your superannuation death benefits. The trustee will usually consider your dependants and your estate.
- Dependants: The trustee may pay the benefits to your dependants. Under superannuation law, dependants can include your spouse, children, any person with whom you have an interdependency relationship, or any person financially dependent on you at the time of your death.
- Estate: Alternatively, the trustee may decide to pay the benefits to your estate, where they will be distributed according to your will (if you have one) or the laws of intestacy if you do not have a will.
- Binding Death Benefit Nomination: To ensure your superannuation benefits are distributed according to your wishes, you can make a binding death benefit nomination. This legally binds the trustee to pay your benefits to the nominated beneficiaries. It is important to regularly review and update this nomination to ensure it remains valid and reflects your current wishes.
- Non-Binding Nomination: If you have made a non-binding nomination, the trustee will consider your preferences but is not legally required to follow them.
It is advisable to check the specific rules of your superannuation fund and consider making a binding nomination to ensure your superannuation benefits are distributed according to your wishes.
If you require assistance with your estate planning, contact our experienced wills and estate lawyers on (03) 9481 2000 and info@tauruslawyers.com.au