Make sure you’re covered.
Superannuation is increasingly becoming the largest asset a person has when they die. What many people do not know is that super does not automatically form part of a person’s estate and subsequently, the distribution of the assets held by the fund is not governed by their will.
It is essential to plan for what happens to your superannuation death benefit and to ensure you have a binding death nomination in place with the trustee of your super fund. This will ensure that your assets are distributed in accordance with your wishes.
Australian Superannuation legislation requires that a death benefit is paid to a member’s dependents (which would generally include a person’s spouse, children and other family members who are financially dependent) or their legal personal representative (their executor).
A binding death nomination is a written direction to the trustee of the fund which sets out the dependents and/or legal personal representative that you want to receive your benefit in the event of your death. If the nomination is valid and in effect at the date of your death, the trustee must pay your benefit to the nominated beneficiaries, in the proportions set out in your nomination. Without the nomination in place, the trustee can exercise its discretion on how and to whom the benefit ought to be paid.
Nevile & Co. can help you ensure that your super is covered by a binding death nomination and that your super fund is distributed in the manner of your choice.
Contact us now on 9664 4700 or email Sarah at email@example.com for further information.