Did you know that some types of assets are not usually able to be distributed in accordance with the terms of your Will? One of these assets is your superannuation.
You might ask, well what happens to my Superannuation upon my death?
The answer is that it is distributed in accordance with the terms of the Trust Deed that governs your superannuation fund.
The Trust Deed will usually allow you to put into effect a Nomination of Beneficiary Form, which could be either Binding or Non-Binding. The person that you nominate on that form needs to be a dependent of yours i.e. your spouse, your child, a person with whom you have an interdependency relationship or any other person financially dependent on you. If you nominate someone other than a dependent then the payment of your superannuation to that person would not be guaranteed.
If you wish your superannuation to be paid to someone other than a dependent, then you would need to nominate your Legal Personal Representative on the Nomination of Beneficiary Form, which would then result in your superannuation being paid into your estate and distributed in accordance with your Will. So if you wish to leave your superannuation to someone other than a dependent, the nomination of your Legal Personal Representative as beneficiary is the way to go, and a clause in your Will providing for your superannuation to be paid to a particular beneficiary, is necessary.
Creating certainty in regard to the payment of your superannuation upon your death is important.
The only way this can be achieved is if your superannuation fund allows you to complete a Binding Nomination of Beneficiary Form. This form needs to be updated every three years to remain valid. Many superannuation funds have a binding nomination form that you can complete; however there are some superannuation funds that do not. If the form is non-binding then the trustee of the superannuation fund has discretion in determining what happens to your superannuation upon your death, taking into account any nomination form you may have completed.
For further advice and assistance in matters related to Wills & Estates please contact our Wills & Estates Team.