A. Your friend is spot on, Jess. Unlike your general savings, home and personal effects etc, super is not automatically included in your Will. Therefore, you need to let us know where you want your super to go when you die.
To do this you need to nominate a ‘beneficiary’. A beneficiary is a person or persons you would like to receive your ‘death benefit’ when you die. This includes the money you have in your super account when you die plus any insurance cover you might have through your super fund.
Who can be a beneficiary?
You can nominate one or more dependents OR a legal personal representative (generally the executor of your Will) to be your beneficiary/ies.
In super, a dependant is a spouse (legal or de facto), child, or any other person who is financially dependant on you at the time of your death.
When nominating a dependent as a beneficiary, you also nominate how much of your death benefit you would like them to receive.
For example, you could leave 60% of your death benefit to your spouse and 20% each to your two kids.
If you nominate a legal personal representative as your beneficiary, it is up to them to distribute your death benefit as instructed in your Will (provided your Will is valid).
How to nominate a beneficiary
There are two ways to nominate a beneficiary: you can make a ‘binding’ nomination or a ‘preferred’ (non-binding) nomination.
If you make a binding nomination, the fund Trustee must pay your death benefit to your nominated beneficiary/ies, and in the per cent you specify.
Binding nominations are valid for three years, after which they need to be renewed.
To make a binding death nomination, you need to complete the Binding Death Benefit Nomination Form (available at mtaasuper.com.au), have it signed by two witnesses who are not beneficiaries, then send it to us.
If you make a preferred (non-binding) nomination, the Trustee decides who to pay your death benefit to and what per cent they will receive. While the Trustee is guided by your nomination, it is not obliged to follow it.
However, this doesn’t mean they pay just anyone! Your death benefit must still go to a dependant or legal representative. However, the person or persons who receive your death benefit may be different from your preferred nomination.
You can make, change, or cancel a preferred nomination at any time via Member SuperSite at mtaasuper.com.au/login