Superannuation funds, death benefits and wills

Superannuation is held in trust on your behalf by your nominated superannuation fund. Given that, it cannot be dealt with effectively through your will. As a result you must specifically advise your superannuation fund if you wish to nominate a person to receive any benefits upon your death.

Where no direction is given to your fund, your benefit will be dealt with in your best interest, giving consideration to your family circumstances. However, you are able to give both a binding and a non-binding death nomination to your superannuation fund. A non-binding nomination will provide your superannuation fund with guidance regarding distribution of your benefit. A binding nomination will direct your superannuation fund to distribute your benefit to a particular person.

Review your position

Many people have made significant contributions to their superannuation funds, particularly up to 30 June 2007. In doing so, they have shifted assets that were originally outside of their superannuation funds into superannuation funds. Many of those people will have wills that were prepared taking into consideration the asset structures which have now been transferred into their superannuation funds.

Estate planning is important and needs to be considered. Saward Dawson recommends that you consult us to review your position in terms or your will and your superannuation funds so that your wishes are best catered for.

Published : 20 December 2007