Death Benefit Nominations - Superannuation
Most people may be surprised to know that along with the family home, a person’s superannuation benefit is one of their most significant assets.
However, do you know that superannuation benefits are not covered by your Will? With superannuation, the payout of a death benefit is usually left up to a trustee’s discretion in the absence of binding death benefit nomination.
A binding death benefit nomination can help to provide certainty as to who will receive your super proceeds, upon the event of your passing. Binding death benefit nominations should be prepared together with a person’s estate planning and Will.
Typically, a binding death benefit nomination may specify a beneficiary. These standard nominations generally do not address the complexity of a client’s circumstances. For example: what is to happen in the event that a beneficiary predeceases the client and if there are multiple beneficiaries to provide for?
Who are considered tax dependents for superannuation purposes and do not incur tax on receiving super death benefits?
How a Binding Death Benefit Nomination Could Help
A binding death benefit nomination serves to legally bind the trustees of your super fund to pay out your super benefits to your dependents, or your estate, in amounts specified by you. For example, they can be used to distribute your superannuation evenly among your children or between children and your spouse. Paying superannuation benefits to your estate allows you to combine all your assets together into one trust for spouses or minor children.
Consulting At Home Legal for a review of your super documentation is a great way to find clarity on binding death nominations and the transfer of control under a self managed super fund. Having a clearer understanding about the allocation of your super funds can help you and your loved ones avoid an undesired tax outcome.
Have Peace of Mind that Your Wishes Will be Carried Out
Consult with At Home Legal if you have not previously considered the distribution of your superannuation, or other assets not covered in your existing Will.
Your consultation with Claire Dunning will begin with a review of your situation to ensure your current nominations and any self managed super deed accurately reflects your wishes. Claire can also help by advising on related matters such as your life insurance and Will. Th is includes advice on providing for beneficiaries of a second relationship and how to nominate beneficiaries for tax purposes.
Reviewing self managed superannuation deeds for succession of the trustee who controls the fund.
Find Effective Support for All your Estate Planning Matters, with At Home Legal.
Book a consultation with At Home Legal today, if you want clarity in your estate planning and to know more about binding death benefit nominations.
Arrange for your consultation with Claire Dunning over phone, by di aling 0422 490 811, and learn how the future can be addressed with qualifie d legal support by your side.