Nominate who gets your super when you die
Your super cannot be included in your deceased estate unless you've made certain arrangements with your super fund first. Find out how to nominate beneficiaries for your death benefit (made up of your super and any insurance benefits) and the essential differences between binding and non-binding death benefit nominations. It's never too early to take control over how your super benefits will be distributed when you die.
In the event of your death, your super fund must pay out the balance of your super account and any insurance benefits.
Your eligible beneficiaries might include your spouse (including de facto and same-sex partners), your children, anyone financially dependent on you, or your legal personal representative.
It's important to know your super account can't be included in your deceased estate unless you've made certain arrangements with your super fund first, namely putting in place a binding death benefit nomination.
There are two types of death benefit nominations you can make to ensure your retirement savings benefit the people you want them to: binding, and non-binding.
Binding and non-binding nominations
A binding death benefit nomination is a binding direction in writing from you to your super fund that tells it to pay any death benefit to your nominated beneficiaries.
A binding death benefit nomination only lasts three years before it lapses. If you decide to make a binding death benefit nomination, it's your responsibility to keep the nomination up to date.
Your super fund can and should let you know when a nomination is about to expire. In the instance that you forget to renew a nomination, it will lapse and become non-binding.
Under a non-binding death benefit nomination, the trustee of your fund decides who receives your super death benefit. They'll usually take your nomination of beneficiaries into account but are not bound to follow it.
How to make death benefit nominations
When you die, you won't have any control over what happens to your super, so it's crucial to make the right beneficiary arrangements now.
Check those you are nominating are eligible and make sure your super fund offers beneficiary arrangements that you're comfortable with.
A binding death benefit nomination must be made in writing using the Binding death nomination form (Super) (PDF). It can be changed at any time, but must be reviewed and renewed every three years.
A non-binding death benefit nomination can be made or adjusted online by logging into your account.
If you are already retired, find out about nominating beneficiaries for your pension account.
What if I don’t nominate a beneficiary?
If you don’t nominate a beneficiary, Media Super will decide who your super is paid to in accordance with the law and the Fund rules. Because we gather more information to decide who to pay your super to and in what proportions, it may take longer to pay out your super.
If we are notified that you have died, and you haven’t made any kind of death benefit nomination, your death benefit will be paid to either your spouse, your children or your estate in the following order of priority:
- If you have a surviving current spouse – we’ll pay your entire benefit to your surviving current spouse (including same-sex, married or de facto).
- If you don’t have a surviving current spouse – your benefit will be divided equally among your surviving children (including adopted and outside of marriage).
- If you don’t have a surviving current spouse or any surviving children – your benefit will be paid to your estate.
- In special circumstances, where we’re not able to pay your death benefit to your estate, your death benefit may be transferred to the ATO.
Case studies
No nominated beneficiaries, but has a will
Gwen, 64 years old
Gwen assumed by making a will which includes her super that her instructions to leave her super to her children would be followed.
Scenario
Gwen has three adult children from a previous marriage that ended more than 15 years ago. She has been in a de facto relationship with David for the past 8 years. David has adult children of his own. David and Gwen live together in a unit that they purchased with no mortgage. Gwen has stated in her will that she wants her super to go to her children while David will get their unit and the rest of her estate.
Outcome
Instructions about super in a will are not binding on Media Super and where there was no binding death benefit nomination made, Media Super must follow our Trust Deed rules and superannuation law to decide who receives a member’s super and any insurance benefits (if applicable).
As David was in a de facto relationship with Gwen at the time of her death, David qualifies as a current spouse and could receive the entire death benefit (including Gwen’s super balance and any insurance she has).
Had Gwen made a binding death benefit nomination leaving 100% of her death benefit to her legal personal representative (LPR), then her LPR could have dealt with her super as set out in her will.
Binding death benefit nomination to son
Judith, 54 years old
Judith is separating from her husband and makes a binding death benefit nomination instructing Media Super to give 100% of her death benefit to her son.
Scenario
Judith and her husband, Daryl have been married for 30 years but agreed to separate two years ago. They are struggling financially so have not yet divorced and still live in the same house until they can sell their home and afford to move into separate homes. They sleep in separate rooms and date other people but still split the mortgage payments and some of the household bills.
Judith makes a binding death benefit nomination to ensure her son will receive all of her super. Judith has a stroke and dies.
Outcome
Daryl learns that Judith has left her super and insurance benefit to their son, who he is not on good terms with, and he believes he has a claim. Daryl argues that because they live in the same home and are not yet divorced that he is Judith’s current spouse.
As a result of making a valid binding death benefit nomination, Judith’s death benefit is paid to her son shortly after her passing.
Non-binding death benefit nomination to daughters
Greg, 70 years old
Greg wants his two adult daughters to receive his super to help them buy their first homes if he dies unexpectedly.
Scenario
Greg and Helen have been married for 40 years and their two adult daughters are in their late twenties. Greg and Helen have a modest lifestyle with the occasional holiday and have paid off their home mortgage. Greg dies suddenly leaving a super balance of $180,000. He has made a non-binding death benefit nomination stating he wants his super split evenly between his two daughters.
Outcome
While Media Super will consider Greg’s non-binding death benefit nomination, Media Super must follow its Trust Deed and superannuation law to decide who will receive his super balance. By law, spouses are considered financial dependants and as part of the assessment, Helen is identified as a potential beneficiary. Because Greg and Helen’s daughters didn’t receive financial support from their father, they are not financial dependants.
It is determined that Helen is the beneficiary of Greg’s entire benefit. Helen believes that she will have a more comfortable retirement if she keeps most of the money and decides so give her daughters only $20,000 each after she receives Greg’s super.
If Greg had made a valid binding death benefit nomination, then Media Super would have paid $90,000 to each of his daughters as he’d wished. As Greg’s daughters are aged over 18, they are not considered dependants for tax purposes so would pay tax on any death benefit they received.
Binding death benefit nomination to husband and daughters
Chris, 62 years old
Chris makes a binding death benefit nomination to ensure his super and insurance benefits will be paid to the people he chooses if he dies unexpectedly.
Scenario
Chris and his husband Oliver have two adult daughters. They live a comfortable life, having paid off their mortgage and retired early. Their daughters have their own families and are financially secure. Chris decides that he wants his super split evenly between Oliver and their two daughters. He makes a binding death benefit nomination naming the three as equal beneficiaries.
Oliver is diagnosed with cancer and passed away 10 months later. The following year, Chris is tragically killed in a car accident.
Outcome
Chris had assumed his two daughters would automatically receive half each of his super after Oliver had passed away. However, the nomination became invalid when Oliver predeceased him.
Media Super is required to assess who to pay Chris’ super to as if no binding death benefit nomination existed and considers all potential beneficiaries in accordance with the Trust Deed and superannuation law.
If Chris had updated his binding death benefit nomination when Oliver passed away and nominated his daughters to each receive 50% of his super, his death benefit would have been paid to his daughters much faster.
Frequently asked questions
What is an interdependency relationship?
An interdependency relationship exists when two people (even if they are not related):
- have a close personal relationship, and
- live together, and
- one or both of them provides the other with financial support, and
- one or both of them provides the other with domestic support and personal care.
If two people, related or not, have a close personal relationship but don’t meet the other requirements, they may still be considered as ‘interdependent’ if the reason that they don’t meet the other requirements is because of the physical, intellectual or psychiatric disability of one of the people.
People who share accommodation, such as housemates, and people who provide domestic care under a contract for service are not considered interdependent.
What if I don’t nominate a beneficiary?
If you don’t nominate a beneficiary, Media Super will decide who your super is paid to in accordance with the the Trust deed rules and super law.
If we are notified that you have died, and you haven’t made any kind of death benefit nomination, your death benefit will be paid to either your spouse, your children or your estate in the following order of priority:
- If you have a surviving current spouse – we’ll pay your entire benefit to your surviving current spouse (including same-sex, married or de facto).
- If you don’t have a surviving current spouse – your benefit will be divided equally among your surviving children (including adopted and outside of marriage).
- If you don’t have a surviving current spouse or any surviving children – your benefit will be paid to your estate.
In special circumstances, where we’re not able to pay your death benefit to your estate, we will consider paying to any other person, otherwise to the Australian Taxation Office as unclaimed money.
Can I nominate a minor child to receive my super?
Yes. If a child under the age of 18 years is a beneficiary, the money will be paid into a trust fund for someone, usually their carer, to administer for the benefit of that child. Sometimes people set up trust funds in their will and prefer to nominate their legal personal representative as the beneficiary of their super, so that the super is paid to their estate, and is funnelled into the trust fund established in their will.
What if I don’t have any dependants?
You can still nominate your legal personal representative who will distribute your super in accordance with your last will, or the rules of intestacy if you don’t have a will.
Online portal
Log in to your Media Super account