What is a Binding Death Nomination?

The nomination of beneficiary form (NOB) is your instruction, as a super fund member, on what will happen to your balance upon your death. Whilst it is a morbid subject, and one we would all rather ignore, it’s something that should be considered carefully as part of your overall estate planning.

Much to the surprise of super fund members, your super fund balance doesn’t automatically go to your estate and is not ordinarily covered in standard wills. Unless you have a “Binding” nomination in place, the trustees of the fund can dispute where or who your money goes too. For this reason, your nomination of beneficiary should be considered as part of your estate planning however it isn’t a legal requirement that you have a NOB on file.

It’s a legal document or written direction, which requires the trustees of the fund to pay a death benefit to a dependent or your estate via a legal personal representative. Death benefits may be paid either in the form of pension or lump sum.

This means that when you die, the trustee/s of the fund must pay your benefit to the beneficiaries you nominated according to the proportions set.

What is a Non-Binding Death Nomination?

In this case, the document will guide the trustees in terms of your wishes however they are still able to exercise discretion as to who and how the death benefit is paid.

If you do complete a nomination of beneficiary, whether it be binding or non-binding, you are free to update or replace it at any time.

Who can be a beneficiary?

  • “Dependants” which includes: spouses (including de facto) children (including those over 18 but with possible tax concessions) tax dependant, or any person who is financially dependent upon you.
  • Your legal personal representative which includes: The executor of your will or the administrator of the estate.

Who can’t be nominated as a beneficiary?

  • Friends, siblings, parents and other relatives are not normally dependants and should only be nominated if there is an interdependency relationship.

Nominations that are put in place will not expire unless you revoke or replace the agreement. As previously mentioned, you are able to update or replace your nomination at any stage.

Xpress Super is not licensed to provide financial advice. This is a complex area and we urge you to seek professional estate planning advice to assist with your decision making.  For further information on Nomination of Beneficiary documents, visit our fact sheet .