Did you know that under Australian law, super isn’t covered in your will?
So it’s important to make sure beneficiaries are nominated for your super in the event of your death.
Beneficiaries can be;
someone in an interdependency relationship with you
your Legal Personal Representative (LPR).
Dependents are defined as;
your spouse or de facto partner
someone who relies on you to meet or help to meet daily living expenses
a person who lives with you in a close personal relationship and depends on you financially.
A Legal Personal Representative (LPR) is the name given to the representative of an estate at law. If there is a will, this person is the executor. Where there is no will, the LPR is the administrator of the estate appointed by the court.
Two types of beneficiary nominations
1. Non-binding nominations
This nominates who you prefer to receive your super. The Trustee will take your nomination into account, but is not legally bound to follow it.
This is fairly easy to set up - it’s one form that you sign.
2. Binding nominations
This nomination gives you more certainty of who will receive your super. The Trustee must pay your super to the person(s) you have nominated if you have a valid binding nomination in place.
There is an extra step to set up a binding nomination as you will need to have witnesses for your form.
For Engineering Super, both types do not expire.
So it’s up to you to keep them up-to-date, for example if you divorce, re-marry, have a child, have additional children etc and want to change your beneficiaries.
If you want to update your nomination, you should complete a new ‘Beneficiary Nomination Form”. You should include all the beneficiaries you want (not just new beneficiaries), as this will automatically override a previous nomination.
This is general information only and does not take account of your personal objectives, financial situation or needs. Before acting on it, consider if the information is appropriate and whether you need to speak to an accredited professional. When considering financial returns, past performance is not indicative of future performance.
This product is issued by Diversa Trustees Limited (ABN 49 006 421 638; AFSL No. 235153; RSE Licence L0000635) as trustee for Professional Super which is a sub-fund of the Tidswell Master Superannuation Plan (ABN 34 300 938 877; RSE R1004953). Professional Superannuation Management Pty Ltd (ABN 31 617 160 791; AFSL No. 499786) (PSM) is the Promoter of Professional Super, which is marketed under multiple brands including Engineering Super.