Have you ever wondered what happens to your super if something happens to you?
Maybe you’ve heard some of the horror stories?
The army officer that passed away and his super was partially paid to his new partner of 6 months rather than to his children, even though he had a will which left his assets to his children.
The couple that met later in life and it was marriage number two – they both had children. They had a Self-Managed Super Fund and were both Trustees. They had discussed with each other about how they wanted their respective children to receive their component of the super. When she passed away though, the new husband as the remaining Trustee paid the benefit to himself.
You naturally think that your superannuation will be paid in accordance with your Will. But, it’s important to know that your superannuation benefit does not automatically form part of your Estate.
In fact, without the right paperwork, it can be up to the Trustees of your superannuation fund who they pay your benefit to. Even if you have nominated someone as your beneficiary, it is still up to the Trustees of your superfund. Do you want a stranger deciding on where your super will go?
Typically when we review a new clients superannuation account we find that there are no nominations at all in place to direct what happens to their super if the unforeseen was to occur.
So, what do you need to do to make sure your super goes where you want it to go?
- Look at your latest super statement and see whether there is a beneficiary noted, or phone your superfund and ask them!
- Make sure that if you have made a beneficiary nomination that it is valid, as they usually expire every three years.
- Talk to your superfund about what type of nomination would suit your circumstances best, i.e. nominated beneficiary, lapsing binding nomination or non-lapsing binding nomination. Or seek some advice from a qualified financial adviser.
Just make sure that what you expect to happen with your super benefit is what does happen! Don’t let someone else decide for you.