Your beneficiaries

Superannuation can be one of the largest assets people leave behind when they die and can form a significant part of your beneficiaries’ inheritance. Yet many people wrongly assume that their superannuation will pass to their beneficiaries according to their will. In fact, superannuation benefits do not automatically form part of your estate. Legally, your superannuation fund can pay your death benefit to your partner, any of your dependants or your estate, at its discretion.

Just as you nominate beneficiaries in your will, you need to do the same with your super or pension fund by instructing the Trustee of your fund accordingly. Completing a binding death benefit nomination is a simple, effective way to ensure that when you die your super is distributed according to your wishes.

What is a binding death benefit nomination?

A binding death benefit nomination is a written nomination made by you, which directs your superannuation fund how to pay your death benefit.

How do binding death benefit nominations work?

To make a binding death benefit nomination, you will need to ask your superannuation fund for a binding death benefit nomination form, and once you have completed the form, return it to your super fund.

What are the benefits?

A binding death benefit nomination enables you to override how your superannuation fund would distribute your superannuation benefits by specifying your own wishes.

What do I need to check before I start?

You will need to check which kinds of death benefit nominations your super or pension fund offers.

As part of your estate plan, you also need to consider the taxation implications of your superannuation death benefit. Lump sum payments paid to dependants (as defined under income tax laws) are tax free. Some payments made to non-dependants are subject to tax.

If you’d like some advice on implementing a binding death benefit nomination, or need help with other aspects of estate planning, you can use our online booking form to organise an initial, no-obligation consultation with a Commonwealth Financial Planner and start planning for a better life today.

 

• Important information
  This information is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Bank customers who wish to obtain information about retirement planning may do so by contacting a Commonwealth Financial Planner. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.