Superannuation after Death: Penrith Wills and Estates Lawyers Update
Contrary to what is commonly believed, superannuation is not automatically part of the estate when a person dies. Even with a will, there’s no guarantee that the provisions made for your assets to go to your loved ones will occur as intended.
Importance of Estate Advice and Will Updates
To ensure your superannuation is distributed according to your wishes, it is imperative to obtain estate advice and update your will. Proper legal advice can guide you in taking specific steps to align your superannuation distribution with your intentions.
Making a Binding Death Nomination
A Binding Death Nomination (BDBN) is a legal way to nominate how your super is paid upon your death. It must be witnessed and signed by two non-beneficiaries, and it typically expires every two or three years depending on the fund’s terms and conditions. Keep your BDBN updated to reflect your current will instructions.
You can nominate:
- Eligible dependents (spouse, partner, children, financial dependents).
- Your legal personal representative (directing the super to your estate).
Other Considerations
Discuss these with your Wills and Estates Lawyer:
- Tax Implications: Important if leaving super to children under 18, high-income spouses, or other dependents.
- Estate Debts: Super can’t pay estate debts unless directed to the estate first.
- Self Managed Super Funds (SMSFs): SMSFs may allow for non-lapsing BDBNs and offer more flexibility and control.
Final Advice
A proper estate plan should be discussed with your Wills and Estates Lawyer. Coupling legal advice with financial advice ensures comprehensive planning. Rafton Family Lawyers can provide expert advice across various offices in Penrith, Richmond, Macarthur, Glenmore Park, and Parramatta.
Email us at reception@rafton.com.au or book an appointment at rafton.com.au.