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Most people don't realise that super doesn't automatically form part of your estate, and can't just be included in your Will. So it begs the question, exactly what happens to your super when you die?
As super is held in a trust, it is treated differently from your estate (also known as your assets or net worth). Telling us who you'd like your super to go to can give you peace of mind that your family will have a financially secure future. Here are some of the things you can do to make sure your hard-earned retirement savings are distributed according to your wishes.
There are three nomination options for you to choose from.
When you die, we'll pay out your super (and any death insurance benefit you may have) to your nominated beneficiary/ies. These can include:
If you're making a reversionary beneficiary nomination, the rules are the same except you can't nominate your personal legal representative. And if you're nominating your child, they must be:
If you have an Accumulation or Income account and have made a binding death benefit nomination, your remaining super balance will be paid out in a lump sum to your beneficiary/ies, including any death insurance benefit payout.
If you have an Income account and have made a reversionary beneficiary nomination, your dependant can either choose to continue receiving regular income payments from your account or withdraw your money as a lump sum.
If you're making a binding death benefit or reversionary beneficiary nomination, you can make, update, or renew your choice any time by logging into Member Online.
Be aware that your nomination will not be valid unless:
If you have an Income account, your reversionary beneficiary nomination will be taken into account over any binding death benefit nomination you have in place.
For more information, download our Binding Death Benefit Nomination factsheet and form.
Your super doesn't automatically form part of your estate and can't be solely included in your Will because it is held in a trust by your super fund. Different rules and regulations apply to superannuation compared to other personal assets like your house, investments, and savings. However, there are specific circumstances where you can make a super nomination in your Will in addition to a binding death benefit nomination.
If you would like to leave your super to someone who is not a dependant (for example, your parents, siblings, or a charity), you can nominate your legal personal representative in your binding death benefit nomination and highlight in your Will who you would like your super to go to.
Making a binding death benefit nomination can be a good way to ensure your loved ones are protected if you die. If you're still unsure about the nomination process, getting some comprehensive financial advice can help. A financial adviser from QInvest2 can help you make a binding death benefit nomination, decide how much each beneficiary should get, and begin planning your estate for the future.
Make a nomination
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