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
      death)
  • Your legal personal representative (e.g. the executor of your Will or the administrator of your estate)

Preferred Nomination vs. Binding Nomination

Preferred

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.

Binding

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?

Preferred Nomination

You can set up or change your non-binding nomination, by logging onto your Member Portal at any time here, or by calling us on 1300 926 626, Monday to Fridays, 8am to 6pm AEST.

Binding 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

Interdependents

Two people have an interdependency relationship if:

  1. they have a close personal relationship;
  2. they live together;
  3. one or each of them provides the other with financial support; and
  4. one or each of them provides the other with domestic support and personal care.

An interdependency relationship will also exist between two people if they have a close personal relationship but do not meet the other criteria as listed above (2, 3 & 4) because either or both of them suffer from a physical, intellectual or psychiatric disability.

This definition may include parent-child relationships and sibling relationships that don’t otherwise fall within the definition of a dependant if the Trustee is satisfied that criteria in the law is satisfied.

Two people don’t have an interdependency relationship if one of them provides domestic support and personal care to the other and is paid for this or works on behalf of another person organisation such as a government agency, a body corporate or a benevolent or charitable organisation.

It is important to note that whether a beneficiary you have nominated qualifies as your interdependent will be assessed as at the date of your death when a death benefit claim is made.  The Trustee must take into account a number of matters specified in relevant laws when determining whether an interdependency relationship exists (eg. duration of relationship, degree of commitment to a shared life and emotional support, whether the relationship is one of mere convenience etc).

Can I nominate someone who lives overseas?

Yes – however, they must be an eligible beneficiary (ie legal personal representative or dependant) as described above.

How do I nominate my beneficiaries according to Islamic heritance rules?

There are great nuances regarding this, so, we recommend you speak to your Islamic and/or legal advisor as to how to achieve this.

What happens if I nominate, and my death benefit is paid to, my legal personal representative.

Your benefit will form part of your estate and be distributed in accordance with your Will (if you have one), or in accordance with the laws of intestacy that govern people who die without a Will. 

I want to keep the beneficiaries that I already have, but I want to add another person. How do I do this?
  • Preferred Nomination: You can log onto your Member Portal at any time here.

  • Binding Nomination: You can complete the Binding Death Benefit Nomination Form found Please note, you will need to re-adjust the percentages from your existing nomination, such that the allocation adds to 100%. You should ensure your existing nominations and any new person you add to your nominations is a legal personal representative or dependant).
What if my circumstances change?

A valid binding death benefit nomination will remain in effect even if your personal circumstances change. If there’s a significant change to your personal circumstances (e.g. marriage, divorce, the death of a nominated dependant or the birth of a child) it’s important you amend your binding nomination to ensure that it continues to reflect your wishes. 

You can amend your existing binding death benefit nomination by making a new binding death nomination, or cancel your existing binding death benefit nomination at any time by properly completing a valid Binding death benefit nomination form and sending it to the Trustee.

If you have made a preferred nomination, it is also important to update it to reflect changes in your circumstances so that the Trustee has the most up to date guide about your wishes.

What happens to my super if I don’t nominate anyone or if my binding nomination is invalid or ineffective?

The Trustee will exercise discretion and pay your death benefit to eligible beneficiaries – which could be your legal personal representative and/or any one or more of your dependants.  An invalid or ineffective binding nomination (including a binding nomination that has expired) may be taken into account by the Trustee when exercising its discretion.

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.

*Disclaimer

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.