Superannuation is an important aspect of financial planning and estate administration. It is crucial to understand that, by default, superannuation benefits do not form part of a person’s estate upon their death.
In Australia, superannuation is typically held in a trust structure, separate from an individual’s estate. This means that the superannuation fund trustee has discretion over the distribution of the superannuation benefits.
To ensure that superannuation benefits are distributed according to your wishes, it is essential to have a binding nomination in place. A binding nomination is a legal document that directs the superannuation fund trustee on how to distribute the benefits upon your death.
By making a binding nomination in favour of your ‘Personal Legal Representative’ who will be your executor or administrator, you ensure that your superannuation benefits become part of your estate and are distributed according to your will or intestacy laws.
Without a binding nomination, the superannuation trustee may have discretion in determining the beneficiaries of the superannuation benefits, which may not align with your intentions.
It may be beneficial to speak with a Geelong estate planning lawyer who can provide advice about superannuation and other estate planning matters.
Geelong Legal can help ensure that your wishes are respected and your loved ones are provided for by establishing a binding nomination for your superannuation benefits.
