This month's question:
How do wills and beneficiary nominations interact?
Your will doesn’t cover your super
Many people don’t understand the difference and assume their super is covered through their will. This isn’t the case so it’s important you also nominate a beneficiary for your super even if you have a will.
A will is a legal document that sets out your wishes for the distribution of your estate on your death. Superannuation is an asset that is held in trust on your behalf and therefore the Trustee of the super fund distributes your super assets.
Super benefits can only be paid to eligible beneficiaries or paid to your estate. If you nominate your legal personal representative this will then be paid to the estate and distributed according to the directions of your will.
There are two kinds of beneficiary nominations you can make on an accumulation super account. These are:
- Binding nomination: TelstraSuper must pay your death benefit according to your wishes.
- Non-binding nomination: this will be taken into consideration but it’s not binding on the Trustee.
Nominate who you’d like to receive your super
- Binding nomination: can only be completed by filling in this form as it requires two witnesses to sign it. It also expires every three years so it’s important to update it before this happens.
- Non-binding nomination: the easiest way to nominate a non-binding nomination is in your SuperOnline account. You can make and update non-binding nominations online. If you’d like you can also fill in this form to make your nomination.
We can help you
TelstraSuper Financial Planning works with two estate planning specialists to ensure members have confidence that their wishes are catered for. Estate planning can be an important part of your retirement plan. If you’d like to speak to an Adviser from TelstraSuper Financial Planning about your estate you can give them a call on 1300 033 166 or fill in the online contact form.
Ask a question
If you have a question about your super fill in our online form and we’ll do our best to answer it in the coming months. You can also request to be contacted about your question should you wish to speak to someone about it.