Many Australians assume that when they die, their superannuation
will be distributed in accordance with their will. The reality,
however, is that without a super death benefit nomination in place,
what happens to your super will be decided by the trustees of your
super fund. This means that the people you want to benefit may miss
out, or worse, that people you wish to exclude may receive a
windfall.
What is a death benefit nomination?
This is a written instruction that outlines who should receive
your super in the event of your death. This nomination is then used
by your super fund to distribute your total benefits (including any
associated life insurance policy payments) to your beneficiaries.
The superannuation laws define who is eligible to receive super
death benefits, which includes spouses, children and financial
dependants.
