Estate planning is about more than just wills and assets; it’s about making sure your loved ones are taken care of after you’re gone.
One crucial aspect, particularly in Australia, is securing your superannuation benefits. Non-lapsing binding death nominations offer a powerful way to ensure your super goes exactly where you want it to. It’s about having control, even after you’re no longer here.
We all hope our wishes will be respected, but the reality is, things can get complicated. Disputes, misunderstandings, and changing circumstances can all throw a wrench in the works.
Non-lapsing binding nominations provide a level of certainty, a way to safeguard your intentions. They’re a vital tool in your estate planning arsenal, and in this guide, we’ll break down everything you need to know.
What is a Non-Lapsing Binding Death Nomination?
In simple terms, a non-lapsing binding death nomination is a legal instruction you give to your superannuation fund.
It tells them exactly who should receive your super benefits when you die. The “non-lapsing” part is crucial – it means this nomination stays in effect indefinitely, unless you decide to change or cancel it.
Think of it as a safety net for your super. It ensures your wishes are carried out, no matter what. It’s a way to protect your loved ones and provide for them, even when you’re no longer around.
Also read: Binding Death Benefit Nomination for Super
How to Make a Non-Lapsing Binding Nomination
Setting up a non-lapsing binding nomination involves a few crucial steps:
- Contact Your Super Fund: Each fund has its own specific process and forms. Reach out to them directly for the correct documentation.
- Complete the Nomination Form: Fill out the form carefully, ensuring all details are accurate. You’ll need to specify:
- Your Beneficiaries: Clearly identify who you want to receive your super benefits. This could be your spouse, children, or other dependants.
- Benefit Allocation: Decide how you want to divide your super among your beneficiaries. You can allocate specific percentages or amounts to each person.
- Witnessing: Most funds require your signature to be witnessed by two adults who are not beneficiaries of your nomination.
- Submit the Form: Return the completed form to your super fund. They will review it and notify you once it’s been accepted.
Remember, accuracy is paramount. Any errors or ambiguities in your nomination could lead to disputes or delays in the distribution of your benefits. Take your time, double-check everything, and don’t hesitate to seek professional advice if you’re unsure about anything.
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Who Can Be Nominated?
When it comes to non-lapsing binding nominations, you have a few options for who you can nominate:
- Dependants: This typically includes your spouse, de facto partner, children, and anyone else financially dependent on you.
- Legal Personal Representative: This is the executor or administrator of your estate. Nominating them allows your super benefits to be paid into your estate and distributed according to your will.
It’s important to note that not all super funds allow you to nominate your legal personal representative. Some funds might have restrictions on who you can nominate, so it’s best to check with your fund directly to see what their rules are.
When choosing your beneficiaries, think carefully about who you want to provide for and how much you want to allocate to each person. You can divide your super equally among your beneficiaries or specify different percentages for each one.
When Does a Non-Lapsing Binding Nomination Lapse?
If you’d like your valid lapsing binding death benefit nomination to last longer than three years, you’ll need to confirm your nomination before it expires.
You can do this by giving the Trustee a written notice that has been signed and dated by you to that effect before your nomination expires.
It’s your responsibility to ensure that the nomination is confirmed before it expires.
Benefits of Making a Non-Lapsing Binding Nomination
Taking the time to set up a non-lapsing binding nomination offers several key benefits:
- Control: It guarantees your super benefits go exactly where you want them to. Your wishes are legally binding on the trustee of your super fund.
- Certainty: It eliminates any guesswork or potential disputes about who should receive your super. It provides clarity and peace of mind for both you and your loved ones.
- Protection: It safeguards your beneficiaries, particularly those who may be vulnerable or financially dependent on you.
- Flexibility: While it’s ‘non-lapsing’, you still retain the power to change or cancel it at any time, adapting to life’s evolving circumstances.
- Efficiency: It can streamline the distribution of your super benefits after your death, potentially avoiding delays or complications.
Essentially, it’s about taking control of your super and ensuring your legacy aligns with your intentions. It’s a proactive step towards securing the financial future of those you care about most.
Securing a Client’s Legacy
Our client approached us at Walker Pender seeking assistance with creating a non-lapsing binding nomination for her superannuation benefits. She wanted to ensure her wishes were carried out after her passing.
We guided her through the process, ensuring the nomination was valid and legally sound, providing her peace of mind and safeguarding her loved ones’ financial future.
Ready to Take Control of Your Superannuation Legacy?
Don’t leave the fate of your superannuation benefits to chance. At Walker Pender, we understand the importance of securing your loved ones’ financial future.
Our team of expert estate planning lawyers will guide you through every step of creating a non-lapsing binding nomination, ensuring your wishes are carried out with clarity and precision. Contact us today for a consultation and take the first step towards securing your legacy.
