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 isn’t dealt with via your Will. So, how do you ensure your super ends up with your loved ones as you would wish?

This article focuses 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 that 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 binding nomination
3. Make a reversionary nomination

Not all super funds offer all the nomination types.

Make a preferred/no nomination

A preferred nomination is also known as a non-binding nomination.

If you do not make any nomination, or you make a preferred nomination, the trustees will have the discretion to pay the death benefit in the way they find is most appropriate, considering your full personal circumstances and any preference you have expressed in a preferred nomination.

Make a binding death benefit nomination (BDBN)