Beneficiaries

Who can be a Dependant

Under superannuation law Members can nominate to have their benefits (including any insurance benefit) paid to the Dependants or to their Estate. Dependants include:

  • The Member’s Spouse (Married or De Facto),
  • Their Children (including adopted, step and ex-nuptial children) Note: Children must be under 18 to be considered dependants for tax purposes,
  • Any other person who is financially dependent on the Member at the time of the Member’s death.

Non Binding Beneficiaries

There are two ways that Members can inform the Trustees of who they would like to have their benefits paid to – if anybody. The first option is to nominate Non Binding Beneficiaries. While not binding on the Trustees, this indication should be considered along with the most appropriate manner to deal with Member’s benefits after death.

It is important for each Member to consider whether this provides the level of certainty they require in situations such as; where the Member is a Sole Director of the Trustee Company, where the Trustee Directors are separated or divorced or where the Member has very specific or unusual requirements of their benefits in the event of their death.

Binding Nomination

The other way Members can inform the Trustees of who they would like to have their benefits paid to is called the Binding Death Nomination. When this form of advice is used, subject to certain conditions, the Trustee must pay out the benefit on death according to the Member’s directions.

Under the Supercorp Trust Deed the Binding Death Nomination does not expire so it is essential that Members consider this each year to ensure that it is still valid. Supercorp reporting will identify the death beneficiaries each year to assist in this review.

Again, it is important to consider if Binding Death Nominations are appropriate for the Member’s circumstances. Failure to update these nominations could have a significant effect on their estate planning if the benefit was paid to someone who the Member nominated several years ago but who is no longer the intended recipient.