As it approaches the end of the year, now is a good time to ensure that your superannuation and life insurance beneficiary nominations are in place and up to date.
What a lot of people don’t realise is that your superannuation and life insurance do not typically form part of your estate in the first instance to flow through your will.
In order to direct who your superannuation and life insurance is to go to, you should have beneficiary nominations in place with your superannuation funds and life insurance companies.
If you do not have a binding death benefit nomination in place (or your nomination has expired), the trustees of your superannuation fund have discretion to determine who they pay your superannuation death benefit to and in what amount, which may or may not be in accordance with your wishes. Also, these nominations usually lapse every 3 years.
It is important that you read the beneficiary nominations carefully when completing as, while they may appear to be simple forms, they are still legal documents that require certain elements to be met in order to be binding and effective.
If you have any questions or would like assistance preparing your estate plan and getting advice on how your superannuation and life insurance beneficiary nominations fit into that plan, please call Lauren Doktor, Wills and Estates Lawyer on 4092 3555.