You may be interested to learn that you can nominate who receives your superannuation benefits separately to your will. This can be done through a Binding Death Nomination (BDN).
A BDN is a written direction to the Trustee of your superannuation fund instructing the Trustee that benefits are to be paid to your nominated beneficiaries. The directions are completely binding on the Trustee, and any of their discretionary power to distribute the superannuation assets usually contained within the superannuation trust deed is overridden.
Nominated beneficiaries can be one or more of your dependents and/or your Legal Personal Representative (LPR). The LPR is the executor of your will or the administrator of your estate. In the event that the BDN is not valid at the time of death, the benefits will be paid to and distributed by your LPR under the terms of your will.
• Your spouse (whether married, defacto, or same sex)
• Your child (any age)
• Any person who was financially dependant on you at the date of death
• Any person who was in an interdependence relationship with you at the date of death
As there could be tax implications, it is advisable to get professional advice about your personal circumstances to ascertain the most appropriate beneficiary.
It should be noted that the BDN will only remain valid for three years from the date of last signing, amendment or confirmation by you. Therefore, if it is to remain valid, you must confirm it prior to the expiry of the three-year term.
Additionally, as a BDN is not invalidated by changes in your circumstances, you should review and amend it any time you experience significant changes, such as a divorce, marriage, birth of a child, or death of a nominated beneficiary.
For more information, please contact Fusion.