Do you own your superannuation and can it be included in a will?

Do you own your superannuation and can it be included in a will?

Contrary to popular belief, superannuation is not owned by the individual, rather a trustee which is usually the superannuation company.

One may assume that all assets are automatically considered in your will, but as assets can only be dispersed in your name, and considering superannuation is held typically by a trustee, it cannot be included in a will. Therefore, the superannuation company can disperse the funds at their discretion in an unforeseen event as superannuation benefits do not automatically form part of your estate.

Making a valid binding nomination gives the trustee specific direction regarding any benefits payable. Under the rules of your superannuation fund, the trustee is obligated to follow this direction, provided that the nomination is valid at the time you pass away. If you do not place a binding nomination on your super fund, the trustee is compelled to determine who to pay the benefits to upon your death.

This does not detract the importance of also having a valid will in place because if a person was to unfortunately pass away without a valid will it is deemed to be dying interstate which may result in a distribution of assets by the government in a pre-determined formula not aligned with their personal wishes.

Please contact our office on (02) 9548 1399 and one of our financial advisers can assist you with your Estate Planning.

Written by Robb Gould (Financial Planning - Para Planner)

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