When the member of a superannuation fund dies,
their entitlement to the assets of the fund
is known as a death benefit.
Death benefits must be transferred out of
the super fund and it is important for members
to understand and be comfortable with where
their death benefit will be paid.
I’m John Gallagher from firm Argon Law,
and I want say a little about the process
of how you determine who gets your death benefit.
Most funds let you nominate who you want your
death benefit to be paid to. But this can
only be done strictly in accordance with the
terms of the trust deed of the fund.
Many funds have a set form for the making
of nominations. But it is important for you
to ensure that your nomination is binding
on the trustee of the fund. And to understand
that in many cases, nominations will lapse
after 3 years and will need to be renewed.
Whether you elect to make a nomination or
not, your death benefit can only be paid to
the executors of your estate, or one or more
of your dependants.
A dependant in this context is either the child
or spouse of the deceased or someone who was
financially dependant on the deceased, or in
an interdependent relationship with the deceased.
There are often good reasons why you should
plan to make a binding death benefit
nomination in favour of one or more of such
persons as part of a comprehensive estate plan.
So give us a call if you want to know more
about death benefit nominations or other aspects
of estate planning and if you found this video
useful then like or comment below and subscribe
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