Who Gets Your Savings?

A binding death nomination will ensure the right people benefit

- Susan Hely

It is worth taking the time to under-stand where your superannuation goes when you die, particularly as balances grow and because life insurance is often held through your fund.

You may think that your super is part of your estate and would be covered by your will. But this isn’t the case. Super is held in a trust and is not part of your personal wealth. “That’s why you need a separate document. You need a death benefit nomination. It’s like a little will to decide who gets your superannuation,” says Brian Hor, special counsel, superannuation and estate planning, at Townsends Lawyers.

Checking on who you have nominated as a beneficiary when you die is important and needs to be kept up to date. You can either have no one nominated, a non-binding nomination or a binding nomination.

“Binding death nomination is an issue that affects everyone these days,” says Hor.