Binding nomination: have you taken this into consideration?

Binding nomination: what you need to know?

Also, did you know that your super is not normally dealt with as part of your will?

Your super is held by the super trustee on your behalf and therefore the trustee may have a degree of control over who receives your super benefit if you die.

There are measures you can take to direct the trustee. In fact, you have three options:

1. Binding nomination – you can set in place a binding nomination which means that your super benefit will be paid to the person or persons you have nominated, if the nomination is valid at the time. This type of nomination provides you with most certainty.
2. Preferred (non-binding) nomination – allows you to nominate who you would prefer your benefit to be paid to, but the nomination is not binding on the trustee.

   The trustee may take your wishes into consideration but has the discretion to pay your death benefit to any one or more of your dependants or your estate.

3. No nomination – if you don’t make a nomination or have an invalid nomination, the trustee will decide who should get your super benefit.

A death benefit binding nomination will expire:

• at the end of three years after the day it was first signed, or last confirmed or amended by the member; or
• if the governing rules of the fund fix a shorter period, at the end of that period.

If you’d like to make an appointment, we can work through what these options could mean for you and explain what is required to make a valid nomination.

Of course, it could also be a good opportunity to see if your super is achieving what you want it to.

Online source: AMP letter template, Binding nominations 2017.

Need help! Contact our financial adviser @Avante Financial on 1300 788 650.