After you pass away, your assets are passed on to the beneficiaries of your Will. This is carried out by an executor and is generally a simple and straight forward process. However, when it comes to your superannuation, it may get somewhat more complicated as to where these funds are allocated. After you’ve passed away, your super can be managed in several different ways by the trustee of your superannuation fund. In this article, McNab McNab & Starke discuss the different ways in which your super can be managed, the role of the trustee, as well as the difference between binding and non-binding nominations.
Superannuation Death Benefits
A superannuation death benefit relates to which individual or individuals receive your superannuation money after you pass away. The beneficiaries of your super are generally family members, or dependents such as a spouse or children. However, in some circumstances you can make provision in your Will for the distribution of your super benefits.
Binding vs. Non-Binding Nominations
A binding nomination is a legal direction made by the member of the superannuation fund to the trustee of the fund. It ensures that superannuation beneficiary rules are strictly adhered to, and that only the individuals selected in the nomination can receive portions of the super. A non-binding nomination allows for more flexibility to the Trustee, allowing the Trustee to divide the super between multiple beneficiaries according to the Trustee’s discretion.
Tax Considerations
Superannuation and death is an extremely important topic that many people forget when writing their Will. Furthermore, there are tax implications that you should consider when considering your superannuation and your Will. For information on how to avoid death tax on superannuation, the team at McNab McNab & Starke can provide you with expert advice.
How to Claim a Superannuation Death Benefit
Claiming the superannuation benefits from a deceased family member or spouse’s superannuation fund can be an arduous task, which is why it is more efficient to employ the services of a lawyer. McNab McNab & Starke have the legal skills to assist in completing all the necessary documentation and following the superannuation beneficiary rules. They will also take care of contacting the superannuation company, and deal with them directly to ensure the money is released to the beneficiaries in the most effective and efficient manner possible.
Superannuation and Estate Planning
Superannuation and death are issues you must consider at some point in your lifetime. By implementing your superannuation into your estate planning, in conjunction with preparing your Will, you can make the process of passing the money to your beneficiaries much easier.
To learn more about how to avoid death tax on superannuation, get in contact with our trusted team of lawyers today.