Nominating a Beneficiary

Making a binding death benefit nomination generally binds the trustee of your super fund to pay the benefit to the beneficiaries you nominate. Remember for the nomination to be valid, beneficiaries must be classified as a dependant under the SIS Act. Other requirements include the nomination being witnessed, and to reconfirm the nomination every three years. However, many funds now offer a non-lapsing ‘binding’ nomination, where the three- year requirement does not apply. This depends on the rules of the super fund.

In the event of your death, the nominated beneficiary(ies) will receive your super benefits, including the proceeds of any insurance benefits.

There may be tax payable on a super death benefit received, depending on the circumstances of the beneficiary at that time.