What happens to your super when you die?

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.

What are the different nomination options?

There are three nomination options for you to choose from.

• If you have an Accumulation account, you can make a binding death benefit nomination to let QSuper know who you would like to receive your super (and any insurance benefit you may have) in the event of your death. This person/people are known as your nominated beneficiaries.
• If you have an Income account, you can either make a binding death benefit nomination or choose to nominate someone to continue receiving your Income account payments if you pass away. This is known as your reversionary beneficiary.
• You also have the option not to make a nomination, in which case, we will generally pay your benefit to your dependant/s or legal personal representative.

Who can I leave my super money to?

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:

• Your spouse (including same-sex and de facto partners)
• Your child¹
• Someone who is financially dependent on you
• Someone who has an interdependent relationship with you, meaning:
  - You have a close personal relationship
  - You live together
  - One or each of you provides the other with financial and domestic support, and personal care.
• Your legal personal representative (the executor of your Will or administrator of your deceased estate).

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:

• Less than 18 years old
• Between age 18-25 and financially dependent, or
• Have a permanent (or likely to be permanent) physical, intellectual or psychiatric disability.

What payment might your beneficiary receive?

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.

How to nominate beneficiaries for your super

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:

• It is correctly completed
• It is less than three years old at the time of your death
• You have given us the original copy of the form, including paper or digital, before your death.

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.

Why can't super be covered in my Will?

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.

Do I need a binding death benefit nomination?

A financial adviser may help you make a binding death benefit nomination, decide how much each beneficiary should get, and begin planning your estate for the future. Deciding what is best for you will depend on your personal circumstances and you may want to seek personal financial advice to get the most from your superannuation. You can find out more about financial advice options at qsuper.qld.gov.au/advice

Make a nomination