We are often asked by our clients about who will get their superannuation proceeds if and when they die. While it can be a morbid subject, death is a certainty for us all so it’s important that you put in place the necessary steps to ensure that the right people receive your super when you pass.

On your superannuation statement, you will see a ‘Death Benefit’ which is your superannuation balance plus any life insurance that would be paid upon your death. Who can receive these funds will be governed by both the law and the trust deed of the superannuation fund. This is typically limited to your financial dependents, which includes your partner (including de-facto or same-sex partners) and children (including step-children and adopted children). The Trustee will consider if the person receiving the funds has been wholly or partially dependent on you financially prior to your death.

Most super funds will allow you to make a Binding Death Benefit Nomination, which is your direction to the Trustee of the fund for who should receive your super when you die. This allows you to stipulate both the beneficiaries as well as the portions of your super that each should receive. Providing your Binding Death Benefit is valid, the trustees of the super fund must follow it.

It’s important that you review your Binding Death Benefit nominations on a regular basis and ensure that they are still valid. If your nomination is to lapse, then it will generally become non-binding which gives the fund’s Trustee greater control over who receive your super funds, which may simply be the Executor of your estate to be distributed according to your Will.

Ensure that you have each of the following:

  • 1) Valid binding death benefit nomination
  • 2) A valid and up-to-date Will that clearly outlines your wishes

Our team at Australian Expatriate Group, with our strategic partners, provides complimentary reviews of your superannuation to ensure you have the right instructions in place.

 

To Your Financial Success!

Jarrad Brown is the trusted fee-based financial adviser for Australian expatriates living in Singapore and throughout Asia-Pacific.

To learn more about how we may be able to help you, please contact us:

✆          +65 8282 5702
✉          info@australianexpatriategroup.com
☜          http://australianexpatriategroup.com

Book a complimentary consultation: http://bit.ly/Book-Your-Consultation

 

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