This month’s article marks the halfway point of our 8 part series focusing on things to know when making a Will.
Your Will doesn’t cover all your assets
Many people believe that if they have a Will, it covers all their assets. However, some assets aren’t automatically covered by your Will; superannuation is one of these assets. Your superannuation is held by the trustee of your superannuation fund and there are special rules that govern how a trustee can distribute your superannuation after you die.
Your superannuation fund may permit you to make what is called a binding death nomination, which allows you to determine who will receive your superannuation after you die. In a binding death nomination you can nominate for your superannuation to be paid to your estate, in which case your superannuation will then be distributed in accordance with the terms of your Will. Alternatively, you can make a binding death nomination nominating a spouse, child or other dependant to be the beneficiary of your superannuation, in which case your superannuation will simply be paid directly to the nominated beneficiary. If your superannuation fund does not allow you to make a binding death nomination or you choose not to make a binding death nomination, then the trustee will decide whether to pay your superannuation to your estate, to then be dealt with by your Will, or whether to pay your superannuation directly to a spouse, child or dependant.
When making or reviewing a Will it is therefore important to also make or review any nominations that you may have made with respect to your superannuation.
This information is intended as general legal information only for people living in Queensland and is not a substitute for individual legal advice.