Superannuation and your estate plan

Did you know you do not own your super?

Superannuation is owned by the Trustee of the Super Fund you are with.

How assets are owned is really important when it comes to your estate planning. If you do not own it, or it is owned jointly then it does not form part of your estate to be distributed under your will.

Unless you make it part of your estate.

For your superannuation, this is where a Binding Death Benefit Nomination (BDBN) plays a very important role- and why having a comprehensive estate plan in place is so important. It tells the Trustee who you want to receive your superannuation and any insurance benefits and in what percentages.

To complicate it further, you are only able to nominate specific people to receive your superannuation. These need to be dependents (can include adult children) and if you nominate someone who is not one of these people, then your BDBN will be invalid and your Trustee can determine who is to receive your super- which can unravel your wishes. Particularly if you want your siblings to receive your super, like I did before I was married with children.

You may also want to utilise the benefits of a testamentary discretionary trust and we need to get your superannuation into the testamentary trust.

Alternatively, you may want to keep the superannuation out of the estate to protect it from family provisions claim, because unless it goes to the Legal Personal Representative, your superannuation isn’t distributed as part of your estate.

Complicated, right?

You might think you have a simple, straight forward will but when I delve into your assets and how they are owned it can get complicated quickly.  

Who you need to actually nominate, how they are nominated and ensuring the forms are filled out correctly (the wrong colour pen can invalidate a nomination!)  ensures your wishes are carried out.

It is important.

It can make or break your plan and it is why, when you engage Illawarra Estate and Family Lawyers,  reviewing and updating your BDBN forms part of your estate planning package.

Book here https://calendly.com/l-dunn-1/estate-planning-instruction-session-  if you would like to get started now.