It’s not easy to think about but planning ahead could make a difficult time a whole lot easier for the loved ones you leave behind.
Super Insider – What happens to your super when you die?
Join host Anne Fuchs and super educator Ruth Weaver as they explore what happens to your super when you die and what you can do today to make sure your money goes to who you want when you pass away.
What do you need to know?
Firstly, it’s important to make sure you have enough insurance cover to protect yourself, your family and your lifestyle if you can’t work or, worse, you pass away. But having enough cover is only half the story.
If you die, Australian Retirement Trust (ART) must pay your super balance and any insurance benefits (if applicable) – to your beneficiaries (such as your spouse, children or estate). Letting us know your chosen beneficiaries is the best way to make sure your benefits are paid to who you want to receive them. If you don’t nominate a beneficiary, we will try to find eligible beneficiaries to pay your benefits to. If we can’t find any, we can make reasonable enquiries and pay your money to anyone with a fair claim.
Preferred versus binding nominations
A preferred nomination isn’t binding, so we’ll only use it as a guide when deciding how to pay your death benefits. A binding death nomination will ensure when you die, your super will go to the person(s) you nominate.
It’s important you let us know who your beneficiaries are, so we know your wishes. It might be a good idea to seek legal advice in nominating your beneficiaries. And remember, to maintain a binding nomination, you need to complete a binding death nomination for every three years, and it’s your responsibility to change your beneficiary nomination as your personal situation and your relationship to your beneficiaries change.
Who you can nominate as a beneficiary
You can nominate a dependant (spouse, children, or other people financially dependent on you) or your legal personal representative (the executor of your estate).
How to make a binding death nomination
To make a binding death benefit nomination, complete the Binding death benefit nomination form.
How to make a preferred nomination
To make a preferred death benefit nomination, use the Change of details form log into Member Online to make your nomination.
What is a reversionary beneficiary?
If you're an Income account holder, you also have the option of selecting a reversionary beneficiary. This means that your beneficiary will receive your Income account payments in the event of your death.
A reversionary beneficiary is:
- limited to your spouse or de facto
- a redirection of your Income account payments.
To make a reversionary beneficiary nomination, complete the Reversionary beneficiary nomination form or log into Member Online to make your nomination.
Please note, making a reversionary beneficiary nomination may affect your Centrelink entitlements and may have tax implications. We recommend you speak to a financial adviser prior to choosing this option.
Want more information?
Check out the Super Savings Guide or call us on 13 11 84 and we’ll talk you through it.