When you have nominated a beneficiary and the nomination is valid under Superannuation law, the Trustee will act in accordance with that nomination. There is no discretion.
A binding superannuation nomination enables you to decide on how superannuation benefits will be distributed in the event of your death. When you have nominated a beneficiary and the nomination is valid, the Trustee of the superannuation fund will act in accordance with that nomination.
A binding nomination gives you certainty, about who will receive your Superannuation benefit in the event of your death.
The most important factors to understand are firstly, whether your fund allows for a binding nomination or limits you to non-binding nominations and then you need to consider who will benefit as you can nominate multiple beneficiaries.
You may nominate your Executor or Legal personal representative, which means the funds will come into your Estate, and be controlled by the terms of your Will, as to where the proceeds to go.
As life circumstances change, you should review the binding nomination. We recommend that they be updated every 3 years. Keep the nomination fresh.
When you have nominated a beneficiary and the nomination is valid under Superannuation law, the Trustee will act in accordance with that nomination. There is no choice.
The Government has imposed strict conditions on how a beneficiary must be nominated:
You should update your nomination if there is a change to your personal circumstances.
If you nominate your legal personal representative/executor, please ensure you have a valid and up-to-date Will, otherwise there is no legal personal representative/executor.
Expert Advice from our Legal Specialists
When a person has been appointed as an Executor under a Will they may need to obtain a “Grant of Probate” of the Will, to deal with a deceased person’s assets.
A cascading will specifies alternative beneficiaries in case the primary beneficiary predeceases you and is unable to inherit your estate.
By making a Will you document who will receive your assets and belongings after you die. A legally valid Will allows an Executor to apply for a Grant of Probate.
We will advise on the content and structure & thereafter create wills, trusts, and other documents that provide how your assets are to be distributed.