Insurance For many people it’s a surprise to find out that Wills do not automatically control how insurance money is paid.

We strongly recommend checking with your insurance provider(s) to make sure you’re happy with your nominated insurance beneficiaries. We recommend that you be especially careful if a beneficiary might struggle with money or relationships. We’re here to talk if you’d like help.

Depending on the circumstances (including the insurance Trust Deed terms) you can generally either nominate:

1. “Legal Personal Representative” which means that you want (all or part of) the funds to go to your estate; or

2. All or part of the funds to chosen beneficiaries (which could potentially include super).

Superannuation For many people it’s a surprise to find out that Wills do not automatically control superannuation (whether retail like Sunsuper or Q Super or a Self-Managed Superannuation Fund).

We strongly recommend checking with your superannuation provider(s) to make sure you’re happy with your nominated superannuation beneficiaries.

Who can be a super beneficiary? The super fund trustee has a discretion to choose between a fixed / limited group of “Dependants”. Dependants are limited to: the spouse of the person, any child of the person and any person with whom the person has an “interdependancy relationship” (last category can become complicated quickly).

Nominating beneficiaries There are broadly two ways to nominate superannuation beneficiaries: Binding or non-binding and the names explain it clearly. Depending on the circumstances (be especially careful if a beneficiary might struggle with money or relationships) you can either nominate (request) OR nominate (binding):

1. “Legal Personal Representative” which means that you want (all or part of) the funds to go to your estate; or

2. All or part of the funds to a limited group of “Dependants”.

It’s important to weigh the pros and cons of making a binding nomination very carefully. Removing Trustee discretion can lead to unexpected outcomes including, for example, funds being paid to a bankrupt person and then being given to their creditors. Reach out to start working with us now.

Confusingly

1. Retail superannuation binding nominations (Binding Death Benefit Nominations) expire after three years so need to be diarised and regularly updated. This can be tricky if, for example, someone lacks capacity to renew the binding nomination.

2. SMSF Binding Death Benefit Nominations (depending on the wording of the SMSF Deed) may not need to expire after three years. As always, read the Deed to be sure. Reach out to start working with us now.