It’s a question many of us don’t think about – until we’re asked to make a nomination when opening a superannuation account or starting an Account-Based Pension (ABP).
For many Australians, super is one of their largest assets outside the family home. Deciding who will benefit from it isn’t just about ticking a box – it’s about ensuring your wishes are carried out and your loved ones are cared for. Many of us enjoy the time over the end of year break to review our financial assets and ensure they are securely organised. Now is a great time to get started, so here is the detail you need to more fully understand how to go about this.
Unlike other assets, your super doesn’t automatically form part of your estate. Instead, it’s distributed by the super fund trustee based upon your nomination, or at their discretion if no valid nomination exists. That’s why it’s critical to understand the options, whether to make a:
Binding, or non-binding,
Lapsing or non-lapsing nomination;
And to consider who qualifies as a valid beneficiary.
But there’s more to it. Tax implications, the relationship between you and the beneficiary, and even estate planning considerations – like avoiding disputes or protecting your assets from creditors – can all come into play. In NSW, for example, notional estate laws can create an unexpected twist.
