Nominating a beneficiary

Who can be a beneficiary?

Under superannuation laws, there are restrictions on who can receive a super death benefit and how it may be paid. Generally, your super benefit (including any insurance benefit paid) must be paid either to a dependant or your estate.

Your dependants for superannuation purposes include:

• Your spouse
• Your child or children
• Financial dependant
• A person with whom you are in an interdependent relationship

The definition of spouse includes:

• your husband or wife via marriage; or
• your de facto partner or any other person with whom you are in a relationship (provided that this relationship is registered under a certain state or territory law); or
• another person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.

The rules are complex and it may be worthwhile discussing your situation with your financial adviser.

Find a Nomination of Beneficiary form for your super fund.

Types of nominations

There are a number of basic types of nominations available but check your specific super fund to ensure you understand their rules and specific requirements to make a death benefit nomination. Whatever the style of nomination you make, you must ensure you select one or more eligible beneficiary otherwise the Trustee may not pay your death benefit according to your nomination.

1. No Nomination

If you choose not to nominate a beneficiary, the Trustee will utilise their discretion in determining who should receive you benefit. For most BT super products, the rules of our Trust deeds generally mean that if you do not make a nomination, the Trustee must pay your death benefit to your legal personal representative (ie. the executor or administrator of your estate).

2. Non-binding Nomination

A non-binding nomination means that the Trustee will consider your preferred nomination but the nomination is not binding on the Trustee. The Trustee will have the discretion as to whom from among your legal personal representative or dependants and in what proportion; your death benefit should be paid.

3. Binding Nomination

If you make a valid binding nomination, the Trustee must pay any death benefit as per your nomination, as long as it is valid at the time of your death.

To be valid, a binding nomination must:

• be renewed or confirmed every three years;
• be signed and dated by two witnesses who are not nominated as a beneficiary
• nominate a person or a combination of persons that are either your superannuation dependants or your Legal personal representative; and
• otherwise be completed in the approved form

4. Non-lapsing Nomination

Your death benefit will be paid to your nominated person or persons if at the time of your death:

• the nominated person is your superannuation dependant or your legal personal representative;
• you have not revoked the nomination; and
• your nomination is not valid.

After nominating your dependant, the Trustee must give conditional consent unless the Trustee has knowledge that you did not understand the consequences of your nomination. The nomination will not be valid if at the time of death the Trustee knows that you have, since the nomination:

• got married;
• entered into a de facto relationship;
• permanently separated from your spouse; or
• had a child with someone other than your spouse or partner.

Unlike a binding nomination, a non-lapsing nomination does not need to be renewed or confirmed every three years.

Find a Nomination of Beneficiary form for your super fund.