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Home / Retiree / Later life planning / Your super after death: How to get your savings into the right hands fast

Your super after death: How to get your savings into the right hands fast

Those of us who have a valid Will in place often assume our executors will take care of all the necessary paperwork and distribute all our assets, including super, to our chosen beneficiaries as we have instructed.

But when it comes to your super, it’s not that simple. Your Will doesn’t automatically decide who gets your retirement savings. It’s up to the trustee of your super fund to make the final decision, and without the right guidance from you the process can be prolonged and distressing for your loved ones.

To ensure you have a say in who gets your super when you die, and that your wishes are carried out quickly, you need to make the most effective beneficiary nomination for your circumstances.

So how do you go about doing that?

Need to know

A 2022 decision by the High Court has changed the rules in relation to using a binding death benefit nomination if you are a member of an SMSF. Check out the section below on binding nominations in an SMSF for more details.

You don’t own your super assets

When you make a valid Will, it governs the distribution of the assets you own personally, like your house, car and bank accounts. What a lot of people don’t realise is that you don’t own your super account personally. It’s held in trust for you by the trustee of your super fund.

Learn about super fund trustees.

Under Australia’s super laws, the trustee of your super fund is the one makes the decision about who receives your super death benefit. .

Related topics,

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Responses

  1. John Lowe Avatar
    John Lowe

    The article states: “A key rule for making a valid death benefit nomination is you must nominate one or more of your dependants under super law, or your legal personal representative (LPR). Your LPR is the executor of your estate.” Does this mean a DGR charity cannot be a valid death benefit nomination for an SMSF? My research elsewhere indicates that a DGR charity can be a valid death benefit nomination for an SMSF. Please advise.
    John

    1. SuperGuide Avatar
      SuperGuide

      Hi John – A charity can’t be nominated as a super beneficiary, including in an SMSF.

      If you want to direct super benefits to a charity after death, the method required is to maintain a valid will specifying the recipient and to nominate your legal personal representative (the executor of your estate) as superannuation beneficiary. The executor is then responsible to distribute assets according to your will, including any superannuation that has been directed to them to be included in your estate.

      Best wishes

      The SuperGuide team

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