When you pass away, your super’s not going with you. So, who’s it going to go to?
It’s an unpleasant topic to talk about (sorry), but here’s why we think it’s worth a few minutes of your time to get this sorted now.
Reason #1 why this is worth your time.
Many people assume any super benefits they have (like their account balance and any insurance payments) will automatically go to their estate if they die.
This isn’t true.
Assets like your house, car, investments and so on can be covered by a Will. Your super benefit on the other hand? Not so much. It’s covered by separate superannuation and taxation laws. And your super fund must follow these when they pay out your money.
Reason #2 why this is worth your time. No, seriously. For real.
You do have some control over who receives your superannuation benefits.
You can nominate a beneficiary – or multiple beneficiaries. By doing so, you’re saying “this person’s my pick to receive my super money”.
There are typically two main types of beneficiary:
- Non-binding. This functions as a guideline only. So, your pick can be overridden if it doesn’t meet the super and tax rules. The truth is there are only a few scenarios where this type of beneficiary nomination is in your best interests.
- This is legally binding on your super fund and requires some basic paperwork and witness signatures. It’s also SUPER IMPORTANT that you read the eligibility requirements. A beneficiary must have some kind of close relationship with you, like a spouse, or be someone who is dependent on you financially. If you want to nominate somebody who doesn’t qualify as a beneficiary, you’ll have to make your super part of your estate. We said earlier this doesn’t happen automatically, but you can make it happen by nominating a Legal Personal Representative. It’s also common to have to re-do binding nominations every three years, so don’t forget to keep yours updated.
Convinced? Here’s what to do next.
Check out your super fund’s resources on this topic so you understand it fully. You don’t want to choose a beneficiary only for them to be invalid to receive your money!
At First Super, we offer members this handy fact sheet about who they can nominate. Plus, our team can chat through your beneficiary choices before you submit your paperwork to make sure you don’t make a mistake.
Brought your KiwiSaver across the ditch?
Nominating a beneficiary means you stay in control of your money – so the effort you’ve gone to transferring it to Australia isn’t wasted! If you haven’t transferred your KiwiSaver yet, why not check out First Super’s KiwiSaver offering?
Want to put your super with a fund that takes you seriously?
This is a sponsored advertising promotion by First Super Pty Limited (ABN 42 053 498 472, AFSL 223988) as trustee of First Super (ABN 56 286 625 181).
This document contains general advice which has been prepared without taking into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and read the Product Disclosure Statement before making any investment decisions. To obtain a copy of the PDS or Target Market Determination please contact First Super on 1300 360 988 or visit our website www.firstsuper.com.au.