Case studies: Super death benefit nominations

What happens to your super after you pass away? As super does not automatically form part of your estate, it can’t be dealt with via your Will. So how do you ensure your super passes to your loved ones in the way you would wish?

This article will focus on people with retirement phase super pension accounts and their death benefit nomination options.

Often there is confusion between the different types of nominations and which one to put in place. Given everyone’s situation is different, there is no one-size-fits-all solution.

Generally, you have three options:

1. Make a preferred/no nomination
2. Make a death benefit nomination
3. Make a reversionary nomination

Make a preferred/no nomination

Making a preferred nomination is not usually offered by all super funds. SMSFs can have this in place if the trust deed allows it. In this, you are asking the super fund trustee to consider your beneficiaries along with other information but the trustee is not bound by it.

If you do not make any nomination, the trustees will have the discretion to pay the death benefit.

Make a death benefit nomination