Superannuation benefits do not automatically fall into your estate upon death.  To ensure superannuation benefits flow to the people you wish, a formal document called a Binding Death Nomination can be prepared. However, a nomination is only binding if the nominee is a legal personal representative or financial dependant of the person making the nomination, and it has not expired.

If you are concerned that a challenge might be made against your Will, a valid Binding Death Nomination will ensure that the superannuation bypasses your estate and is paid directly as you wish.

Many death benefit nominations are not binding on the superannuation fund trustee, meaning that the trustee may determine how the superannuation is paid. Your wishes may not then be carried out if the nomination is not legally binding.

Make sure that you have carefully considered your superannuation when preparing your Will, to ensure your beneficiaries are protected.

For further information on the preparation of your wills and how Superannuation is dealt with in your wills, contact Byron Cannon on 07 5443 6600 or email byron@fclawyers.com.au