What Happens to My Super When I Die?
Unlike your personal assets—like bank accounts or personal property—superannuation is held in a trust by your super fund and governed by superannuation law, not estate law. This means your super (and any associated life insurance benefit) is not automatically covered by your Will unless you take specific legal steps.
To ensure your super is directed to the right person, you must make a Binding Death Benefit Nomination (BDBN). This document tells the trustee of your super fund exactly who should receive your benefits. Without it, the trustee may use their discretion and decide to pay your super to a spouse, child, or legal representative—regardless of your personal preferences.
There are two types of Binding Death Benefit Nominations:
- Lapsing nominations, which must be renewed every three years, and
- Non-lapsing nominations, which remain in place until you choose to update or revoke them.
We can advise on which type is best suited to your circumstances and help ensure it aligns with your Will and other estate documents.
Why Superannuation Planning Matters
Failing to formally nominate beneficiaries can lead to unexpected outcomes, particularly in blended families or where relationships have changed over time. Disputes may arise between current partners, former spouses, or children, especially where large super balances or insurance benefits are involved.
We often assist clients who wish to:
- Ensure their super goes to a dependent child or partner
- Direct their super to their estate for distribution under their Will
- Minimise tax liabilities for beneficiaries
- Avoid the risk of the trustee distributing their super in a way that conflicts with their personal wishes
Including a superannuation clause in your Will and keeping your nominations current is key to ensuring everything works together as intended.
How We Can Help
Our team provides clear, practical advice on how to:
- Create or update a Binding Death Benefit Nomination
- Nominate your legal personal representative so super can be distributed via your Will
- Align your superannuation strategy with your Will, Enduring Power of Attorney, and Enduring Guardian
- Avoid common pitfalls—like nominating an ineligible beneficiary or allowing a nomination to lapse
- Maximise the value of your super by managing the tax treatment of death benefits
We also offer witnessing and guidance through the nomination process to ensure it’s valid and enforceable.
The Full Picture: Coordinating Your Estate Plan
A truly effective estate plan considers all your assets, not just the ones covered by your Will. Your superannuation, digital accounts, guardianship preferences, and powers of attorney all need to be aligned. Our estate planning lawyers will work with you to develop a cohesive and forward-thinking plan that supports your personal, financial, and family goals.
Take Control of Your Super Legacy
Superannuation is too valuable to leave to chance. With the right advice and planning, you can make sure it ends up in the right hands, at the right time, with minimal stress for those left behind.
Contact The Law Office of Conrad Curry today to speak with our experienced estate planning team.
