To Bind or not to Bind
(with due apologies to Shakespeare)
Do you need a binding, or non binding death benefit nomination in your super fund?? Did you realise that on your death, your superannuation is dealt with separately to your estate? Just because your will stipulates that your estate is divided equally between your kids, doesn't mean that this is what will happen to your superannuation. How your superannuation is divided is at the discretion of the superannuation fund trustees. If you want the superannuation to be passed to a particular beneficiary / beneficiaries, then a binding death benefit nomination may be the answer. A binding nomination is as the name suggests, and if correctly executed, is binding on the trustee. If you have a non-binding nomination - this is like a statement of intent. The Trustees can take this into account, but are not obliged to follow it, if there are other considerations. If you would like more information about this, please give us a call.