Super death benefits

Your superannuation death benefits will generally paid to one or more of your dependants (or your estate) when you die. You can make a binding death benefit nomination while you are alive to direct how your super balance will be distributed. If you don’t, the trustee of your fund has the discretion to determine who should receive your super death benefit when you die (unless the benefit is a reversionary pension).

The taxation of your superannuation death benefit payments will depend on:

• whether the recipient is one of your dependants,
• whether the death benefit amount is paid as a lump sum or a super income stream, and
• your age when you die and the age of your recipient/s (for superannuation income stream death benefits).

To learn more about the key aspects of superannuation death benefits see the following SuperGuide articles: