Death Benefits from super

Depending on your super fund and the options available, the Trustee may consider your nomination when they exercise discretion in paying a superannuation death benefit but are not bound by your nomination (this is known as a ‘non-binding’ death benefit nomination). Alternatively, the Trustee may be bound to pay a superannuation death benefit in accordance with your specific nomination (known as a ‘binding’ death benefit nomination).

When making your beneficiary nomination you should also consider the tax consequences, which are based on who the super death benefit is paid to and whether they are considered a dependant for ‘tax purposes’.