If you’re like most of us, when your super statement comes in the mail, you open it up, check the balance, and then toss it in a drawer.  Now, go to that drawer, pull it out, and have a look – Have you made a binding death nomination?

A binding death nomination ensures that your super will be passed down according to your wishes.  You can nominate a spouse, dependent children, a person who is financially dependent on you, or your estate.  You can split your super between people: For instance if you’re married with two children you can assign each child 25% and assign our spouse 50%.

Why do you need to do this?  Because if you don’t, the trustees will determine who gets your estate.  They may distribute it according to your wishes; but there is no guarantee they will.  A binding nomination ensures they must follow your instructions.

Binding nominations generally must be renewed every 3 years.  This might seem like a pain, but the upside is that if your circumstances have changed in those three years – say you’ve had another baby, or divorced your spouse – you can change your binding nomination accordingly.  When your binding nomination is set to expire, your super will contact you with a renewal form.

But you don’t have to wait for the renewal form.  You can change your binding nomination at any time.

For most of us, super represents our second-biggest asset, after our home.  Making a binding nomination is a really easy way to take control of your estate.

If you’d like to follow upon this, call your super company or make an appointment with your financial advisor.  If you don’t have one, why not try us?  Go to http://www.ballaratwealth.com.au for more information or to make an appointment.

 

Peter Angel

Authorised Representative of Aon Hewitt Financial Advice Limited

Authorised Representative No. 1234567

 Aon Hewitt Financial Advice ABN 13 091 225 642 AFSL No. 239183

This information may be regarded as general advice.  That is, your personal objectives, needs or financial situations were not taken into account when preparing this information.  Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it.  Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product.