SUPERANNUATION BENEFIT NOMINATIONS

Back to News

It’s not really something that we like to talk about but, having said that, let’s take a look at what control you may have over your superannuation should you pass away.

There are various ways trustees can plan the distribution of superannuation to beneficiaries. With the event of blended families now more common it is wise consider who should receive superannuation benefits.

Superannuation can, but does not normally, form part of your Estate or Will and whether you are a member of an SMSF or a public offer fund you should review your nominations on a regular basis. Too often we get busy with our lives and forget that if something should suddenly happen to us our benefits may go in directions which are notCemetery according to our latest wishes.

The most common form of nomination in an SMSF is an indicative nomination and, while this is normally binding on the trustee, if there are any concerns then a binding death benefit nomination should be set in place. A binding death nomination will offer more certainty and may cover circumstances with different levels of complexity offering different outcomes. A nomination made to a public offer fund will most likely only be a very simplistic form of binding nomination.

Normally if a pension is active in an SMSF then the best course of action is for it to be reversionary to a spouse, but this doesn’t mean that this is necessarily the only option to be considered.

Issues that might be covered in a more complex binding death nomination are:

  • Provision of benefits for multiple beneficiaries
  • Provision of benefits for alternative beneficiaries
  • Allocation of specific investments to specific beneficiaries

Along with binding death benefit nominations trustees should consider having an enduring power of attorney in place.

In conclusion estate planning in an SMSF does not merely need to be the nomination of a single beneficiary and can include multiple layers, specific terms and special conditions. However, the most important issue is that whatever nomination is in place, it must be reviewed on a regular basis.

Optima Partners offers support to all businesses. Whatever your requirements

For more information on how Optima Partners’ services can help your business, contact the team at info@optimapartners.com.au for a consultation.

Latest News

Official Statement – New ATO correspondence system
Optima Partners has recently introduced a new system to manage ATO correspondence for our registered...
How to set up a self-managed super fund (SMSF)
A self-managed super fund (SMSF) can provide flexibility, investment choice and potential tax benefits for...
Peak bodies declare support for removal of red tape
Federal Treasurer Jim Chalmers announced on September 24, 2025 that the government is looking at...
Succession planning: a comprehensive guide
Succession planning is a key component of a successful business strategy. It is a crucial...
Key Dates – October 2025
21 October: Lodge and pay September monthly activity statement. 28 October: Lodge and pay Q1,...
Debt enforcement, payday super headline ATO’s 2025-26 plan
The Australian Taxation Office (ATO) has released its 2025-26 corporate plan, outlining key priorities, challenges...
Official Statement – Phishing attempts
We are aware that some clients have recently been receiving fraudulent emails and phishing attempts...
Effective strategies for debtor management
Debtor management is a key component of long-term business success. Poor debtor management can quickly...
Choosing the Best Client Accounting Software for Your Business
Good client accounting software is essential for business growth and improvement. The right software will...
Key Dates – September 2025
September 21: Lodge and pay August monthly activity statement. September 30: Lodge PAYG withholding payment summary...