Super death benefit nominations: who gets your super when you die?
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Short answer
Your super does not automatically follow your will. Your fund pays it under its rules, guided by your beneficiary nomination. A valid binding nomination tells the fund exactly who to pay. Many binding nominations lapse after three years, so check yours. You can only nominate dependants or your legal personal representative.
Key facts
- Super is held in trust by your fund and is usually not part of your estate.
- A non-binding nomination is only a guide. The trustee decides.
- Lapsing binding nominations typically expire three years after you sign them. Some funds offer non-lapsing nominations.
- You can nominate your spouse, children, financial dependants, someone in an interdependency relationship, or your legal personal representative (your estate).
- Adult children who were not financially dependent may pay tax on part of a super death benefit.
Why doesn’t my will cover my super?
Your super fund holds your super in trust. When you die, the trustee pays your death benefit, including any life insurance held in super, according to the fund’s rules and the law. Your will only controls super if the fund pays it to your estate. For many Australians, super and the insurance inside it are among their largest assets, so this matters.
What types of nomination are there?
| Type | What it does | Watch out for |
|---|---|---|
| Binding (lapsing) | The trustee must pay the people you name, if the nomination is valid | Usually expires after three years |
| Binding (non-lapsing) | Like a binding nomination, but doesn’t expire unless you change it | Not every fund offers it; must be kept up to date |
| Non-binding | Tells the trustee your wishes | The trustee can decide differently |
| Reversionary (pensions) | Your pension continues to a nominated dependant | Only for income streams; rules vary |
| No nomination | The trustee decides between dependants and your estate | Can take longer and cause disputes |
Who can I nominate?
- Your spouse or de facto partner, including same-sex partners.
- Your children of any age, including step-children and adopted children.
- Anyone financially dependent on you.
- Someone in an interdependency relationship with you, for example a person you live with and care for.
- Your legal personal representative, so the money is paid to your estate and follows your will.
You cannot nominate a friend, a sibling or a charity directly unless they are a dependant. To leave super to them, nominate your legal personal representative and include the gift in your will.
How do I make a valid binding nomination?
- Get the form from your fund, or use its online process if it offers one.
- Name eligible beneficiaries and make the percentages add up to 100%.
- Sign and date it in front of two adult witnesses who are not beneficiaries, unless your fund’s process says otherwise.
- Send it to your fund and keep the confirmation.
- Diary the expiry date if it lapses, and review it after any change in your family.
Is a super death benefit taxed?
A lump sum paid to someone who is a dependant for tax purposes, such as a spouse or a child under 18, is tax-free. Adult children who were not financially dependent are not tax dependants, so they may pay tax on the taxable component. Paying super to your estate does not avoid this. A financial adviser can explain the options for your situation.
Common questions
Does super form part of my estate?
Not automatically. Super is paid by your fund under its rules. It only becomes part of your estate if the fund pays it to your legal personal representative.
What happens if my binding nomination has expired?
An expired lapsing nomination usually stops being binding. The trustee then decides who receives your super, and may treat your old nomination as a guide.
Can I nominate my adult children?
Yes. Children of any age can be nominated. They may pay tax on part of the benefit if they were not financially dependent on you.
Does my life insurance in super follow the same rules?
Yes. Insurance held inside super is usually paid as part of the super death benefit, according to the same nomination.
Sources and official help
- Moneysmart: binding death benefit nomination
- ATO: paying superannuation death benefits
- AustralianSuper: nominate a beneficiary
These guides are general information, not legal or financial advice. Laws differ between states and territories and change over time. Speak to a solicitor or your state or territory public trustee about your situation.