What you need to know about super beneficiaries
<p>Who do you want your superannuation to go to? If you don’t decide now, someone else will do it for you. Here’s what you need to know about nominating super beneficiaries.</p><p>Many people are unaware that your superannuation fund will decide on your behalf who your super goes to if something were to happen to you. That is, if you haven’t specifically told it who you want the money to go to. The same goes for the insurance benefits tied up in your super.</p><p>The trustee of the fund will decide on who should receive your money out of your dependants. Unless you’ve nominated a super beneficiary, a person or persons who you’ve nominated to receive your super in the event of your passing.</p><p>But did you know that a beneficiary has to be one of three types of people to be eligible to get your super funds? Did you know that if you divorced from your ex but never got around to informing your super fund, that they could be eligible for your money, rather than a new partner? Here’s a few things you need to know about super beneficiaries.</p><p><strong>Choose carefully</strong></p><p>Your super beneficiary can only be one of three types of people for your nomination to be valid. You can nominate your spouse, child or children, or anyone who is financially dependent on you; someone with whom you have an interdependency relationship; or, your estate or legal personal representative.</p><p>According to wealth management firm BT Financial Group, your beneficiary has to be a dependent for superannuation purposes. If your nominated beneficiary doesn’t fit into one of these categories, then the trustee will generally not be able to pay this beneficiary your super benefit.</p><p><strong>Tell your super about any changes</strong></p><p>If there are any changes to your personal situation that may affect who you want your superannuation to go to, then you’ll need to tell your fund. Even if you marry, divorce or have children, your super beneficiary will not change automatically.</p><p><strong>Be aware of the different beneficiaries</strong></p><p>Your superannuation benefit is treated separately from your estate, which means that your super benefit must be paid to one of your dependants unless you request the trustee to pay it directly to your estate. While your will may specify you leave all of your other assets to a close friend, if they’re not a dependant, the trustee will not be able to pay your super benefit directly to them when you die.</p><p><strong>The case for a binding nomination</strong></p><p>To make sure your super is paid to your dependents if something were to happen to you, it’s a good idea to make a valid binding nomination. This generally makes the payment process quicker. If you don’t make a binding nomination, the trustee must determine who among your potential dependants should receive your super benefits.</p><p>If you don’t make any nomination at all the trustee may determine to pay your benefit directly to your estate irrespective of your personal circumstances. By making a binding nomination, you’re removing any uncertainty about who receives your super and if applicable, insurance amounts.</p><p>Nominating a super beneficiary or updating any information is relatively straightforward. It generally involves completing a form provided by your super fund. If you’re not sure how to obtain this form or would like further information contact your super fund.</p>
