BINDING DEATH NOMINATIONS

BINDING DEATH NOMINATIONS
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binding death nomination

Some people think that their ‘Will’ will cover everything. Many people may be surprised to learn that estate planning covers more than ‘Wills’.

Wills-Probate1Although people may not wish to discuss their plans about their death (they may find it difficult to talk about), it is necessary to make all the relevant arrangements prior to their death.

As we don’t have a crystal ball, no-one knows when their time is up.

If you have money being paid into a superannuation fund, whether it is an Industry Fund or your own Self Managed Superannuation Fund, you should complete a Death Benefit Nomination and provide it to the trustees of the Superannuation Fund. An Industry or Public Offer Fund will most likely only accept a binding nomination, you might in a SMSF need only complete an indicative nomination but as all circumstances are different and change from time to time you should consult an advisor.

What is a binding death benefit nomination?

– It is a written direction to the Trustees of the superannuation fund, that sets out the dependants and/or legal personal representative that you want to receive your benefit in the event of your death.

The binding death benefit nomination must be valid at the time of your death for the trustee to act and pay your superannuation to the beneficiaries you have nominated and in the proportions that you have nominated.

Three Easy steps to completing you binding death nominations:

   1. Complete the form;
   2. Find two witnesses (they can’t be your nominated beneficiaries) and sign and date the form in front of the witnesses);
   3. Return to the form to the Trustees of your superannuation fund.

The nomination or change in nomination does not take effect until it has been received and accepted by the Trustee.

Just one other thing to note – your valid binding death benefit nomination will remain in effect even if your personal circumstances changes. It is very important to review and amend you nomination if there is a significant change in your personal circumstances such as a marriage, divorce, the death of a nominated dependant or the birth of a child to ensure that your binding death benefit nomination continues to reflect your wishes.

As superannuation can be confusing at times, if at all in doubt please do not hesitate to contact Optima Partners on 08 6267 2200 or email us

Small photo of Zoi Yannakis

 

 

 

ZOI YANNAKIS

SMSF/ACCOUNTANT – OPTIMA PARTNERS

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