Did you know your Superfund may be able to decide who your super goes to?
No? Most people don’t!
So, here is what you need to know to take control of your superannuation.
Generally, your superannuation is an asset excluded from your Will. This means it does not form part of your estate when probate is applied for.
Most people have a non-binding nomination – which means that you simply nominated who you wanted your superannuation to go to on your passing. Therefore, any benefit payable upon death is distributed by the superannuation trustee in accordance with the Trust Deed and at the discretion of the Trustee.
So, what does that mean in plain English? Essentially your nomination is a guide only and the Trustee does not need to follow this guide. They can determine that all or part should be distributed to another party you have not nominated.
Alternatively, you are able to put a binding nomination in place to remove trustee discretion. This means the Superfund is bound by your decision and cannot choose who they think should get it.
Each fund has its own forms for a binding nomination most of which require legal advice and a statement to be signed by a lawyer.
For legal advice about your superannuation or to find out more information, contact the team of Penrith Estate Lawyers at Amanda Little and Associates Estates.
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