This video outlines the steps to making a death benefit nomination.

When you nominate your beneficiaries, you’re choosing who will receive your superannuation balance if you die. The start of a new year is a great time to review your arrangements and make sure the people you care about most will be looked after.

We’ve also prepared this list of Frequently Asked Questions about death benefit nominations. If you have additional questions or need extra help, please contact us. 

Your options are:

• Dependants – This can include your spouse (married or de facto), children (including step or adopted), anyone financially dependent on you, or anyone with whom you share an ‘interdependency relationship’. Although some exceptions may apply an interdependency relationship generally includes – you live together, and one or each provides each other with financial, domestic and personal support and care.
• Your estate – This means your super goes into your Will and is then distributed by your legal personal representative. It’s worth remembering that if your super is paid to your estate, it could be subject to challenges or claims from creditors.

If you don't have dependants or an estate (a Will), then your superannuation death benefit can pass to anyone in your life that the trustee deems appropriate. If you have made a preferred nomination, the trustee will take this into account, but it will also consider other factors in your personal situation. If the trustee cannot locate anyone appropriate, the benefit will pass to the Australian Taxation Office (ATO).

There are two ways to nominate your beneficiaries.

Preferred nomination (non-binding)

• This is more like a guide. The trustee will consider your wishes but will also look at your personal situation when deciding who gets your super. For example, if your circumstances have changed (like separation, a new partner, or children), the outcome might not match what you originally intended.
• You can make a preferred nomination through your online account.

Binding nomination

• This is more definitive. If your nomination is valid, the trustee must pay your super exactly as you instruct. Binding nominations can mean faster payments to your beneficiaries. But they need to be updated every three years, or they revert to preferred nominations.
• For binding nominations, you’ll need to complete and submit a Nomination of Beneficiaries Form (available via your online account), signed in front of two witnesses (who cannot be beneficiaries themselves). Watch the video above for a more detailed explanation.

For Retirement Accounts only (pension), there is the option of nominating a ‘Reversionary Beneficiary’, who would automatically continue to receive your pension payments. The reversionary beneficiary must be a dependant, generally your spouse.

Life changes -- relationships shift, families grow, and circumstances evolve. If you don’t update your nomination, the people you want to look after may not receive your benefit.

Imagine this: someone nominates their spouse years ago, later separates, and enters a new relationship with children. If they never update their nomination and a divorce had not been finalised, their separated spouse could still receive the full benefit under a binding nomination, leaving the new partner and children with nothing.