It is important to remember when carrying out your estate planning that superannuation does not normally form part of your estate upon your death and will not be distributed in accordance with your Will as a matter of course.
It does not matter whether you are a member of a retail fund or a self-managed fund, the same applies. You should ensure that your superannuation passes to your preferred beneficiary and therefore you give consideration as to whether you should be preparing a Binding Death Nomination. That direction is much easier if you are a member of a retail fund as they have simple forms which can be completed and witnessed and sent to the fund.
It is different for a self-managed superannuation fund. Much depends on the content of the Trust Deed.
Any Binding Death Nomination must comply with the legislation for it to be binding on Trustees. If the nomination is a non-binding death benefit, then the Trustee does not need to have regard to it.
Again, it is usual that a Binding Death Nomination only has effect for a period of three years after which it was signed. Once the three year period has elapsed, then the Binding Death Nomination ceases to have effect.
There are special rules that apply to SMSFs. We at Meehans can assist you in preparing your Will and Superannuation Directions. Please contact a member of our team for assistance.
This article was published on 20/09/22 and the information is valid only to the date of publishing. This article should be considered merely general and non-specific on the subject matter and is not and should not be considered or relied on as legal, advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.