Superannuation is a reality for all of us. The whole topic can be a minefield: potentially, one of the most confusing is the way in which your funds are distributed upon your death.
When you die, the Trustee of your superannuation fund decides on who will receive your superannuation. Many people are unaware that their superannuation and often, their insurance benefits, are up for grabs amongst your dependants and your Estate and its beneficiaries. Generally, superannuation is treated separately from the rest of your Estate and Will.
Under superannuation law, the Trustee of your superannuation fund has the discretion to distribute your entire superannuation balance as they see fit.
If you want to overrule the Trustees discretion and truly have the final say about who receives your death benefit, you need to set up Binding Death Benefit Nominations (Binding Nominations). This ensures that your superannuation is paid, as you want, after your death.
You get to remove any uncertainty about who receives your superannuation (including insurance amounts) when you die. This means you can nominate exactly who gets what. This makes your Estate Planning more precise and effective.
This is an important issue … you may want to consult an adviser to ensure that you achieve the optimal financial result for your beneficiaries and especially your dependants.
For more information, contact your Financial Adviser.
Disclaimer – Information current as at 26 November 2015 – This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should read the Product Disclosure Statement (PDS) before making a decision about a product.
This article originally appeared on www.matrixplan.com.au.