Binding Death Benefit Nomination: Who Qualifies and What You Get
Learn how to ensure your superannuation payout goes exactly where you want it by using a binding nomination.
This is a formal instruction you provide to your superannuation fund to dictate exactly who should receive your money after you pass away.
Who it's for
This is available to all members of a superannuation fund.
What you get
By submitting this nomination, you ensure that your chosen beneficiaries receive your superannuation balance. To keep your instructions valid, you usually need to submit a new form to your fund every few years.
What it costs you
There is no cost to set this up, but it does require your time to complete the necessary paperwork and submit it to your provider.
The catch to know
If you do not make a "binding" nomination, the trustees of your fund have the discretion to decide who receives your money. This means they can choose who gets the payout based on their own assessment, which may not align with your personal wishes.
How to apply
- Contact your superannuation fund to request a death benefit nomination form.
- Complete the form by clearly naming your chosen beneficiaries.
- Ensure the form is signed and witnessed according to your fund's specific requirements.
- Submit the completed document to your fund and keep a copy for your records.