Many people are unaware that Superannuation (and the insurance benefits within it) are not considered part of your Will.  This is because your Superannuation is held in trust for when you retire, whereas your Will only deals with items that you personally own.

To ensure your Superannuation is passed onto those that you choose, it’s essential to complete a Binding Death Benefit Nomination (BDBN) form and lodge it with your Superannuation Fund.

The best way to complete this form is by nominating your Legal Representative for 100% of the benefit payment.  By doing so, your Superannuation will become part of your estate upon your death and your Will can therefore stipulate how the funds should be divided.  This is particularly useful for tax planning and managing risk.

If the payment is made directly to a testamentary trust as part of your estate, the money could be distributed more tax effectively and it is also protected from creditors which is particularly helpful for business owners.

As with any legal advice, each situation is different. We strongly recommend only using a specialist estate planning lawyer to draft and execute your documents.  Our role is to support you in briefing the lawyers and making sure any BDBN form is lodged with your Superannuation Fund.

Click here to set up a time to discuss this further.