Who will get your super if you pass away whole a member of the Crescent Wealth Super Fund? It’s not easy to plan for this situation. But, by choosing who receives your super when you die, you could make a difficult time much easier for the loved ones you leave behind.
What is a “Death Beneﬁt”?
Death Beneﬁt = Superannuation Balance + Insurance Benefit (if any)
Who gets my super when I die?
If you die before being eligible to receive your super, the Trustee of the Crescent Wealth Super Fund must determine who to pay your super balance and any insurance benefits (if applicable) to, having regard to superannuation laws.
If you don’t nominate a beneficiary(s) or you make a Preferred Nomination (also known as a non-binding nomination), the Trustee will exercise discretion and pay your death benefit to eligible beneficiaries – which could be your Legal Personal Representative and/or anyone or more of your Dependants.
Who can I nominate?
You can nominate one or more of the following:
- Your dependant/s, which may be:
- your spouse
- your children
- interdependents (in summary, someone who lives with you and shares a close personal relationship where one or both of you provide financial and domestic support, and personal care of the other. More info under ‘Interdependence’)
- other financial dependants (such as someone who relies on you financially at the time of your
- Your legal personal representative (e.g. the executor of your Will or the administrator of your estate)
Preferred Nomination vs. Binding Nomination
A preferred nomination (also known as a non-binding nomination) only guides the Trustee on who to pay out your benefits. It’s not legally binding. This means that while the Trustee will consider your nomination, ultimately, the Trustee has the final say, and will still need to exercise discretion having regard to relevant laws when making a decision about who to pay your benefits to – especially, if you’ve nominated a person who is not your dependant or legal personal representative at the date of death.
A valid and effective binding nomination is a formal written direction, where the Trustee is usually legally bound to pay your death benefits according to your instructions.
A binding death benefit nomination which is validly made (ie. it is signed and witnessed in accordance with relevant laws) expires after 3 years. You’ll need to submit a new binding nomination form every 3 years if you wish to maintain your nomination. If you don’t renew, the nomination automatically becomes a preferred nomination.
It’s also important to ensure you only nominate eligible beneficiaries (ie Legal Personal Representative and/or Dependant/s) and update your nominated beneficiaries as your personal circumstances change (e.g. marriage or divorce). Whether a person is your dependant is assessed as at the date of your death.
How can I make, change or cancel my nomination?
You can set up or change your binding nomination by completing a valid Binding death benefit nomination form. Once completed, it is required to be posted to the Fund.
You’ll need to submit a new binding nomination form every 3 years if you wish to maintain your nomination. If you don’t renew, the nomination automatically becomes a preferred nomination.
More Information & FAQs
Need more information?
When deciding who to nominate, consider your personal circumstances. You should be aware that the tax treatment of your benefits may differ depending on who receives your benefits. For taxation and financial advice taking into account your circumstances, you should consult an appropriately qualified adviser.
This web page contains information which is general in nature and does not take into account your speciﬁc objectives, ﬁnancial situation or needs. It is important that you consider the appropriateness of this information with regard to your ﬁnancial objectives and personal situation. Before making any decisions in relation to the Crescent Wealth Superannuation Fund, you must read the Product Disclosure Statement at crescentwealth.com.au/super.