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10 Superannuation

Death Benefits from super

Where a member completes a 'non-binding' death benefit nomination form with their super fund, the trustee may consider your nomination and use your direction as a guide when they exercise discretion in paying a superannuation death benefit, but are not bound by your nomination. Alternatively, the Trustee may be bound to pay a superannuation death benefit in accordance with your specific nomination (known as a 'binding' death benefit nomination).  Most super funds offer 'binding' death benefit nominations” these days.  

When making your beneficiary nomination you should also consider the tax consequences of the beneficiary.  That is, who the super death benefit is paid to upon the death of the member and whether they are considered a dependant for 'tax purposes'.

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