Did you know that not having a nominated beneficiary on your super can mean that in the event of your death the funds from your super can be delayed, paid to the state government or allocated in a way that was not intended? This causes unnecessary stress for loved ones in a time that is already difficult.

Why is it important to nominate a beneficiary?

Without a nominated beneficiary the funds are distributed in accordance with the terms of the Trust Deed of the superannuation fund, and is decided by the trustee based on what is ‘fair and reasonable’. If you want to leave your benefit to specific beneficiaries, and leave people out, you need to nominate your beneficiaries to be assured this will happen.

Who can you nominate?

The criteria for who can be a nominated beneficiary is specific, it is limited to

  • Dependents (spouse, de facto, child and financial)
  • Interdependents
  • Your will

Your superannuation benefit is treated separately from your estate, and therefore, beneficiaries need to be nominated when joining a superannuation plan. In some cases previous nominations may have lapsed so it is important to keep them up to date.

The value of advice

Everybody’s situation is different, and in these times family situations can be quite complex. It is worth the time to think through your requirements, take advice and gain control of your superannuation benefits.

You may benefit from talking with an adviser at Harvest Financial Group. To discuss your advice needs call 02 8908 4300 to make an appointment.