Five things you may not know about binding nominations
Your super will grow to become one if your most valuable assets. So it’s important you understand where it’ll go when you’re gone. Did you know that ‘binding nominations’ can empower you to tell your super fund exactly that? Here are five things you may not (but probably should) know about them.
- Your Will won’t cover your super
Many people don’t know this, but your super usually won’t automatically form part of your Will. Your Will covers assets you own (like property, investments and savings). Your super is governed by superannuation law and is held in trust by the trustee of your super fund. This is why different rules apply and why it’s important to let us know how you’d like your death benefits distributed. - Even with a small balance, it matters
You may have a small super balance now, but it’ll grow over time. You may also have death insurance cover through your super. This would be paid out on your death, which means small super balance may become quite significant. - A valid binding nomination gives you final say
Some family arrangements are complex and the number of blended families is increasing. Industry-wide, this is a common factor in many of the death benefit disputes coming before the Superannuation Complaints Tribunal. You can control who can share in your death benefit by making a valid binding death benefit nomination. - A binding nomination doesn’t have to be forever
We offer lapsing and non-lapsing death benefit nominations. A lapsing nomination expires after three years, whereas a non-lapsing nomination doesn’t expire (unless you change or revoke it). You can revoke or change your binding nomination at any time. - You can’t nominate just anyone
To be valid, a beneficiary must be a ‘superannuation dependant’ or legal personal representative. A dependant may include your spouse, child, someone in an interdependency relationship with you or someone financially dependent on you.
Got questions?
If you have any queries or concerns, check directly with your superfund or chat to your Highview expert today.
Cranbourne: 03 5990 1000
Prahran: 03 9529 1566
Mornington: 03 5911 2100
Source: Super Informed 1st Quarter 2018 Issue