Did you know that super is not automatically covered in your will? This means you need to provide clear directions about who you want your super to go to. What happens when you die may not be something you want to think about, but it’s important that you have control over the distribution of your assets and savings.
What is a will?
A will is a legal document that states how you want your assets to be distributed after your death. It also allows you to choose an executor – an individual or institution responsible for making sure your wishes are met. A will would normally include the name of your executor, clear instructions about how you want your assets to be divided, what should happen if someone you name dies before you, and your signature. It may also include the name of a guardian to care for young children if you have any.
Do you need a will?
If you own property and have possessions, you should have a will. If you don’t have a will, your assets will be distributed according to a statutory legal formula that differs from state to state and may not provide for family and friends as you would wish. A legally valid will enables you to specify how you would like to distribute your property in the event of your death.
Super and your will
Super is not an asset of your estate, which means it is not automatically part of your will. To ensure that your super is treated in accordance with your wishes, you should either:
- Provide your super fund with the name/s of your beneficiary (the person/s you want your super to go to); or
- Nominate your estate as your beneficiary (so that your super can then be distributed from your estate according to your will)
- Informing your super fund where you would like your super to go
- When you die, your super benefit will be handled in different ways depending on the instructions you have given to your fund or the direction in your will.
You can nominate more than one beneficiary, and your nomination may be:
- A non-binding nomination, which leaves the trustee to investigate your situation and make the final decision on who receives your benefit.
- A binding nomination, which, if valid, means the trustee must pay according to your nomination. You have the option of making either a lapsing or non-lapsing binding nomination.
- Lapsing binding nominations must be confirmed or updated every three years. Non-lapsing binding nominations do not have an expiration date and do not have to be confirmed or updated.
It’s important to regularly review who will receive your superannuation benefit in the event of your death, particularly if you have a binding nomination, as it may have become invalid due to changes in circumstances. If you do not make a beneficiary nomination, the trustee will investigate your situation and make the final decision on who receives your benefit. There are specific rules about who you can nominate to be a beneficiary of your super.
How to make a will?
You can make a will through a solicitor or in a do-it-yourself kit. If you do choose to do it yourself, be aware that a poorly drafted will could mean your end-of-life wishes aren’t clear, which could lead to possible legal disputes. Learn more about how to make a will.
Need help?
If you have questions about nominating your beneficiaries or understanding your super, you can also speak with one of NGS Super’s Super Specialists. It’s free, and they can answer your general questions about superannuation. Book your complimentary chat with an NGS Super Specialist.
This is general information only and does not take into account your objectives, financial situation or needs. Before acting on this information, or making an investment decision, consider whether it is appropriate to you and read our Product Disclosure Statements, Financial Services Guide and Target Market Determinations at ngssuper.com.au. You should also consider obtaining financial, taxation and/or legal advice tailored to your personal circumstances before making a decision.This information has been issued by NGS Super Pty Ltd ABN 46 003 491 487 AFSL 233 154 as trustee for NGS Super ABN 73 549 180 515.
