Now is the time to act upon your estate planning to ensure your superannuation funds are distributed as you wish once you pass away. Implementing binding and reversionary nominations can help you achieve greater estate planning and social security certainty.
One way superannuation owners remove trustee discretion is through binding death benefit nominations. This is a legal instrument that enables the client to specify which dependants they want to receive their super death benefit and usually details in what percentage this should be carried out.
However, a super death benefit can only be paid to a ‘SIS dependant’. These include:
- Child of any age
- Financial dependant
- Interdependent person
- Legal personal representative of the deceased fund member
Importantly, there are different types of binding nominations available to clients which can be utilised to meet their individual needs.
- Lapsing nominations are valid for three (3) years and must be renewed or they will become invalid once they lapse. This type of nomination can be updated or cancelled at any time to take into account any changes to the clients changed circumstances.
- Non-lapsing nominations are similar to lapsing nominations except they don’t need to be renewed after three (3) years to remain valid.
Another option available to clients with account based pensions is to complete a reversionary beneficiary nomination. This option enables the client to select who they would like to continue to receive their pension payments in the event of their death. People able to receive this type of benefit include those as listed above.
Estate planning plays an important role in financial planning and if utilised correctly it can ensure a client’s is property structured to meet their objectives and to protect against possible loss. Contact us today to discuss and review your estate planning needs and objectives.
If you’re unsure if your current arrangements are adequate or if you currently do not have your estate planning plan established, Total Advice Partners are available to assist with all your enquiries. Please feel free to contact us at any time to discuss your situation and financial needs.
(P) (07) 3284 7875 | (F) (07) 3284 4790