What Is a Death Benefit Nomination, and Why Check Yours?

It is one of the most overlooked documents in Australian estate planning, partly because most people do not remember ever filling one in. Yet it can decide where a significant amount of money goes.

What it actually is

A death benefit nomination is the instruction you give your superannuation fund about who should receive your super, and any insurance held inside it, when you die. Because super generally sits outside your will, this nomination, rather than your will, is what guides where that money goes. We cover the bigger picture in what happens to your super when you die.

Binding, non-binding, and lapsing

Nominations generally come in a few forms. A non-binding nomination is treated as a guide the fund's trustee can consider but does not have to follow. A binding nomination, made correctly, is intended to direct the trustee. And many binding nominations lapse after a set period unless you renew them, which means a nomination you made years ago may quietly no longer be valid. The exact rules and options can vary between funds.

Why it is worth checking today

Lives change. People marry, separate, have children, and drift from old funds they opened in a first job. A nomination made in your twenties might still point to a parent or an ex-partner. Because who can receive a benefit, and how it is taxed, follows specific super rules, an out-of-date nomination can cause both heartache and unintended outcomes. Tax questions in particular are worth raising with a licensed adviser or the ATO.

A two-minute job, and a place to record it

Log in to each of your super funds, including old ones, and check what nomination is in place, whether it is binding, and whether it is current. Then write down which funds you have and what you have nominated, so the people who matter are not left guessing. The Estate Organiser gives you one place to record exactly that.

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Educational content only. Not legal, financial or tax advice. Estate laws vary across Australian states and territories. Always consult a qualified professional about your specific situation.