It is strongly recommended that you choose your superannuation beneficiaries. In the event there is no nomination, the Fund's trustees have discretion over where your superannuation is distributed upon your death.
A Will only deals with assets that are owned by the testator, or creator of the Will, in their own right. Assets that are controlled, but not owned, cannot pass through the Will. Superannuation funds are held in trust, which means they do not classify as an estate asset and cannot pass through a Will. That's why nominating your beneficiaries is important to avoid the uncertainty of having someone else make the decision on your behalf.
There are generally two types of nominations where you can choose your preferred beneficiaries:
A non-binding nomination is not legally binding and only persuasive in terms of helping Fund trustees delegate your super. A binding nomination legally requires trustees to respect your beneficiary wishes. A non-lapsing nomination is similar to a binding nomination, however a non-lapsing nomination will not expire after three years. In nominating beneficiaries the person nominated to receive your superannuation benefit must be your dependant or legal personal representative, as defined under the Superannuation Industry (Supervision) Act 1993.
You can nominate beneficiaries anytime. To nominate your beneficiaries please complete the relevant death benefit nomination form in the forms section of our website.