You may not like to think about it, but one day it will happen to all of us. Thinking about what happens to your super when you die is really important.
You might be surprised to know your super doesn't form part of your estate. This means upon death, the person or people who receive your super death benefit aren’t determined by your Will. Under Australian law, there are restrictions on who can receive your superannuation death benefit and how it can be paid.
You can choose to have your death benefit distributed to one or more dependants. A dependant includes:
- Your spouse (including a de facto or same sex partner)
- Your child (including your step, adopted or ex-nuptial child)
- Any person who is financially dependent on you just prior to your death, or
- A person with whom you share an interdependency relationship.
An interdependency relationship describes two people who live together where one or each provides the other with financial, domestic and personal support.
Your options for nominating beneficiaries
You can nominate the beneficiary/ies you would like to receive your super and any insurance you have, by making either a:
- Preferred beneficiary nomination, or
- Binding death benefit nomination.
Preferred beneficiary nomination
A preferred beneficiary nomination provides a guide to the AustSafe Super Trustee in deciding who will receive your death benefit. This type of nomination is not legally binding on the Trustee, however it will be taken into consideration along with the rules set out in AustSafe Super's Trust Deed and superannuation legislation.
You can also do this on MemberOnline.
Binding death benefit nomination
A binding nomination allows you to choose who you want to receive your super in the event of your death. The Trustee of AustSafe Super is bound to pay your benefit according to your instructions, providing it is a valid nomination at the time of your death.
For more information on beneficiaries, read the Your Super Guide.