Superannuation is for your retirement. However, a dead person no longer needs retirement money. Therefore, the Superannuation must leave the low taxation environment. It is paid out at death. But who gets your super at death? An SMSF Binding Death Benefit Nomination directs where your super goes at death. It either goes to a person (dependent) or into your Will.

However, your Superannuation is not an estate asset. It does not automatically go into your Will. What happens if you have no binding nomination? The SMSF trustee pays out your Super as it sees fit. Fight back. A binding death benefit nomination overrides the trustee's discretion.

Does my SMSF allow for SMSF Binding Death Benefit Nomination?

Many SMSF Deeds state that a binding nomination can only be completed on the exact Nomination Form contained in the Deed. However, most Nomination Forms don't comply with the new law. Therefore, it is impossible for that SMSF to have binding nominations.

Our legal partner, Legal Consolidated fixes all of that. They update the SMSF Deed to allow for any Nomination Forms. They also give you a fully compliant Nomination Form as part of the pack.

Legal Consolidated also updates your SMSF Deed. This ensures that your SMSF can set up binding nominations.

Who can get my Superannuation at death?

You can only nominate either (1) a dependent or (2) a legal representative (the trustee in your Will)

A 'dependent' includes:

1. your spouse and de facto (includes same-sex)
2. your children of any age (includes adopted)
3. any person financially dependent on you
4. any person in an interdependency relationship with you
5. your 'legal personal representative' - the executor in your Will (LPR).

For more information on Binding Nominations and potential death tax on superannuation benfits, contact Westmount Financial or Legal Consolidated.