Even though super is often one of the largest assets you own, it’s not automatically covered by your Will. In order to choose who gets your super when you pass away, along with any insurance entitlements that may be included, you need to nominate a beneficiary. It can take less than 15 minutes for you to nominate your beneficiaries.
Your super can be paid to people who are your dependants or to your Legal Personal Representative (the executor or administrator of your estate). Dependants include:
While you can’t nominate a friend or other relative to receive your super money, you can make arrangements for your super to be paid to your Legal Personal Representative, who will be responsible for carrying out instructions in your Will. Your Will would then determine who your super will be paid to.
There are different types of nominations available for your super. The difference between these types of nominations is important. It may change who gets your money and how quickly they receive it.
Scroll table horizontally on mobile
| Binding non-lapsing nomination | Binding lapsing nomination | |
|---|---|---|
What does it cover? |
Super |
Super |
Who can you nominate? |
Your dependants or your Legal Personal Representative |
|
Is it legally binding? |
Yes |
Yes |
How long does it last? |
Does not expire |
Three years. We let you know before it expires. |
Can I change my nomination? |
Yes, you can update or change at any time |
|
Having a binding nomination makes it clear about who should receive your super when you die. It means the executor of your estate doesn’t have to take extra and time-consuming steps to determine who should receive your super.
A non-binding 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.
A reversionary beneficiary nomination only applies to income streams from retirement accounts. You can only nominate your spouse or your de facto spouse. You can also nominate a binding beneficiary for a retirement account.
Your beneficiary will receive your retirement income payments. It will be paid to them in the same amount and frequency as they were paid to you, until the balance runs out. The account balance received by the beneficiary will have an impact on their balance transfer cap.
Scroll table horizontally on mobile
| Reversionary beneficiary nomination | |
|---|---|
What does it cover? |
Retirement income stream |
Who can you nominate? |
Spouse or de facto spouse |
Is it legally binding? |
Yes |
How long does it last? |
Does not expire |
Can I change my nomination? |
Yes, you can update or change at any time |
Available for Aware Super accounts? |
For retirement income accounts only |
First, decide who you want to give your super to, then choose if you want to make a non-lapsing or lapsing binding nomination. To nominate your beneficiary:
This video will take you through the steps.
Want to make sure your super goes to your loved ones? We've made it fast and easy to do this by nominating your beneficiaries in Member Online. Make sure you have your mobile handy - the one registered to your account. You'll need this to keep your account secure.
Log in to Member Online, opens in a new window. If you have more than one account with us you will need to add beneficiaries to one account at a time, that way you have the option to add different beneficiaries to each account. Select an account and then scroll down to Your Beneficiaries and click Add beneficiary.
At the top of this page is information about beneficiaries. It's a good idea to have a read and make sure you understand the different types of nominations you can choose from.
Here we'll choose binding non-lapsing and click Add non-lapsing nomination. At the top of this page is important information about who you can nominate.
When you're ready click Add beneficiary, enter the details of the person you want as your beneficiary. It's important to use their correct name as it appears on their ID, even a typo here could cause problems down the track. If you're nominating more than one beneficiary let us know how much of your super this person should receive.
You can add this as a percentage of your total super balance under the Portion of benefit heading. If you're nominating just one beneficiary make this amount 100%. Click add. Click Add beneficiary again if you want to add another person.
You can nominate as many beneficiaries as you like, the combined portion allocation needs to add up to 100%. Click submit. We will need to send a verification pin to the mobile number registered to your Aware Super account. Once we've processed your beneficiary nomination it will appear on your dashboard.
Click to view details. Here you can change or add to your beneficiaries at anytime. Before taking any action you should consider your circumstances and needs, seek appropriate professional advice if you think you require it. If you need help accessing your account or adding beneficiaries, we can help.
Visit aware.com.au/contact to get in touch.
Staying financially organised includes reviewing your super beneficiaries every few years and after major life events like marriage, children, grandchildren, divorce or illness.
Retirement is one of those key milestones, so it makes sense to include this task when you’re planning to stop work. If your nomination has lapsed or is about to, your super fund will send you a reminder to update it.
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%.
Log in to Member Online, head to Activities and Inbox and click on Beneficiaries.
There may be tax implications for someone you nominate who is not your dependant for tax purposes. Someone can be a dependant under superannuation law but not a dependant for tax purposes (for example, an adult child). It’s important to get tax advice from a professional.
Learn more on the ATO website.
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.
No, a Power of Attorney (POA) cannot make or update a beneficiary nomination on your behalf. If you have a lapsing nomination, it will expire after three years, and if you lose capacity before renewing it, there will be no nomination in place. If you have a non-lapsing nomination, it will remain in effect, but you won’t be able to change it if your circumstances change. It’s important to consider what’s most appropriate for your situation and review your nomination while you’re able to do so.
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.
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 could also mean added stress, increased costs and potentially unintended outcomes. Your super fund may need to investigate further.
The transfer balance cap is the maximum amount you can transfer and hold in tax-free retirement phase accounts.
Join our experts as they break down super and finances into easy-to-understand topics through our live webinar education series.
You may be eligible for the Government Age Pension when you retire to help fund your life in retirement.
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