Did you know your Will doesn’t automatically cover instructions for who gets your super or the insurance benefits that’s a part of your super account when you pass away?
That’s why it’s so important to nominate a beneficiary on your super account. If you don’t nominate anyone, your super fund will decide who your super death benefit is paid to, in accordance with superannuation law and the Aware trust deed. A binding beneficiary nomination reduces payout delays and protects your loved ones from family disputes.
Under the Aware fund rules, it’s now quick and easy to nominate a non-lapsing binding beneficiary online – without forms and witnesses to worry about.
What beneficiary nomination types can I make?
There are two types of nomination you can make on your super account at Aware. It’s important to know the difference.
A Binding non-lapsing nomination and a binding lapsing nomination.
Having a binding nomination makes it clear about who should receive your super when you die.
A non-binding nomination, or no nomination, means it’s not legally binding. Your super fund will decide who gets your money. New non-binding nominations are no longer available through your Aware Super account, but you may still have one active on your account if you set this up in the past, so its important to understand the difference and review your current nomination with this in mind.
There is a third nomination type which can only be made on a retirement income stream – a Reversionary beneficiary nomination. It’s legally binding, doesn’t expire, and means your partner will get the same payments at the same time until the money runs out. They’ll need to show some documents, like a death certificate, to start the payments. The money they get will also count toward their own super balance limit.
| Binding non-lapsing | Binding lapsing | Reversionary beneficiary nomination | |
|---|---|---|---|
| What does it cover? | Super and any associated insurances | Super and any associated insurances | Retirement income stream |
| Who can you nominate? | Your dependants (as defined in previous section) or your Legal Personal Representative | Spouse or de facto spouse only | |
| Is it legally binding? | Yes | Yes | Yes |
| How long does it last? | Does not expire | Three years from the date you make it. | Does not expire |
| Can I make and update it online? | Yes | No – you can start the process online but you need to print the prefilled form, sign it and post it back to us. | Yes |
| Can I change my nomination? | Yes, you can update or change your nomination at any time. Remember, you should review your beneficiary nomination regularly no matter which type you choose, to ensure it meets your wishes when circumstances have changed. | ||
Can I make a nomination offline?
We understand you may not want to make a nomination via your online account. You can use a physical form to nominate or amend who gets your super when you die. You can also use this form to cancel your existing nomination.
Print the form – fill it out and have it witnessed by two people who are not listed as a beneficiary and post it to us. You can also call us on 1800 650 873 and ask for a form to be mailed out to you.
Still have questions?
No, they receive the payout from your super fund and include that money in the estate. It’s then distributed in accordance with your will.
You can nominate your legal personal representative. The money will be distributed according to your Will.
The trustee of your super fund will decide who your money goes to if you don’t make a nomination. If you have made a non-binding nomination, this will be used as a guide only. The trustee's decision will be made in accordance with superannuation law and fund rules. If you don't have a binding or reversionary beneficiary, it could delay your super being paid out.
It will mean extra paperwork for those close to you. It will also mean added stress, increased costs and potentially unintended outcomes. Your super fund may need to investigate further.
You can leave your money to more than one beneficiary. You need to let your super fund know how much of your super each person should receive, as a percentage of your total balance. You can add as many beneficiaries as you like, but for the nominations to be valid the combined portions must add up to 100%.
When an insurance claim is accepted by the insurer, the proceeds are paid into your super account and become part of your total balance. Your beneficiary nomination applies to your entire account balance, which could include any insurance proceeds.
Super isn’t automatically covered by your Will. You’ll need to choose who it will go to by nominating a beneficiary. If there's someone you’ve decided to give your super to who isn’t a valid beneficiary, you can include your super in your Will and nominate the Legal Personal Representative of your estate as the beneficiary of your super. That way, your super is paid out as per your instructions.
If the person you’ve nominated as a beneficiary has passed away, your nomination is no longer valid. Generally, the trustee of your super fund will decide how your super is distributed. It’s a good idea to regularly review and update your beneficiary nominations.
