The truth about superannuation and death
The law says that your superannuation money sits in a trust fund, which means that legally, it’s not owned by you but rather is ‘locked away in a safe’ (so to speak).
So it can’t be given away in your will.
The law has some good news, though. On your death, your superannuation money passes to whoever you have nominated on the special super fund form you sign, called a beneficiary nomination. This special beneficiary nomination form is kept by the trustee of your superannuation fund.
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When asked, most people have not kept a copy of this vital beneficiary nomination form and are often a little unsure as to what that form says or whether they signed it.
Do it now – call your super fund trustee and ask them to send you a copy of your signed beneficiary nomination form. If it names your current partner, all is well.
But, have you been divorced or changed partners?
When people are divorced or change partners, they often forget to remove their ex from their signed beneficiary nomination form. The consequences are most unfortunate. If they die with their ex’s name on their signed beneficiary nomination form, their ex receives all their superannuation money. Their new partner has no claim on the superannuation money.
The same rules apply to self-managed super funds – the last signed beneficiary nomination form rules.
So, take charge!
We should all be making sure that our signed beneficiary nomination form is up-to-date with our lives, but people who have been divorced or changed partners, are especially at risk.
Michael Leahy is a specialist business lawyer with over 30 years’ experience in commercial and estate law. He is available to assist on 0416 203 205 or email [email protected].
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