What happens to your super if you die?
Your super is likely to be one of your biggest assets. But here’s something many people don’t realise: your super isn’t automatically covered by your will.
If you want to make sure your super goes to the right person (or people), there are a few steps you need to take.
The essentials
Your super is not included in your will and requires a valid nomination of beneficiary.
If you don’t make a nomination, the super fund Trustee will decide who gets it.
You can choose who receives your super by nominating a beneficiary.
There are specific rules around how your super is paid out, and to whom.
It’s smart to check your nomination regularly, especially after big life changes like marriage, divorce or having kids.
What could happen to my super?
When it comes to who receives your super (and any insurance claims) should the worst happen, there are three possible scenarios:
Valid Beneficiary: you have made a nomination and someone who qualifies under super law (like a partner, child or financial dependent) receives your super
Your estate: you have nominated that your super be paid to your ‘estate’, and your Will says who will receive it.
No action: you haven’t informed your super of a nomination and the Trustee will decide who should receive your super.
What is a beneficiary?
A beneficiary is the person (or people) you choose to receive your super if you pass away. It can be your partner, your children, someone you care for – or your legal personal representative (your estate).
If you don’t nominate anyone, your super fund’s Trustee will decide who receives your balance. That may not always reflect your wishes, especially after life changes like separation or family breakdown.
Why is having a beneficiary important?
Your super isn’t automatically covered by your will.
Keeping your nomination up to date ensures your money ends up in the right hands, with less stress and fewer delays for your loved ones.
Who can I nominate as beneficiary?
Under super law, valid beneficiaries include:
Spouse (legal, de facto, any gender)
Children (including step, adopted, any age)
Someone you share an interdependent relationship with (like a sibling you live with and support)
Your legal personal representative (LPR) for your estate, via your will*
*If you nominate your LPR on your form, your super will be paid to your estate, and the executor of your will decides who receives your super.
What type of beneficiary nominations are there?
At Verve Super we offer two types of beneficiary nominations.
Non-Binding Nomination
You request who should receive your superannuation and insurance in the event of your death. The Trustee must take your nomination into account, but will have the final say. This can lead to delays while the Trustee decides who to pay.
Non-Lapsing Binding Nomination
This is a legally binding instruction that the Trustee must follow. It remains in place until you cancel it or update it. It needs to be printed, signed and dated by you in front of two witnesses, then posted to us.
Because it’s non-lapsing, it will only become invalid if one of your nominated beneficiaries dies before you do, or is found not to be a valid beneficiary (as defined above) at the time of your death. The nomination must be made by you (not through a Power of Attorney).
What is a Trustee?
While your superannuation account might seem like a personal account – it is held in trust by the Trustee of your super fund. A Trustee is a legal entity that runs your super fund and ensures its legal compliance.
They:
• Hold your super in trust
• Make investment decisions.
• Are legally responsible for protecting members’ interests
• Follow superannuation laws
• Decide who gets your super when you pass away
How do I check or update my nomination?
Log in to your Verve Super account
Select ‘Insurance & Beneficiaries’ to view your beneficiaries
You can also check your Annual Member Statement.
To change your nomination, just complete and return a new form.
What happens if I haven’t nominated a beneficiary?
The Trustee may:
pay your super to your estate
use its own discretion to decide which of your dependants receives it, and in what proportions.
Even if you’re in a new or recently ended relationship, the Trustee could decide to pay your super to that person, instead of your estate or children.
Factors such as domestic violence and financial abuse are not required to be taken into consideration by the Trustee. If you are in a relationship that is financially abusive, this could also potentially meet the classification of financial dependence and therefore make it more likely the Trustee will pay out to your partner/abuser.
How do I nominate a beneficiary?
As super is one of your biggest financial assets, deciding what happens to it after you’re gone is a powerful move.
Verve Super offers two types of beneficiary nominations:
1. Non-Binding Nomination
You let us know who you’d like your super to go to. Our Trustee will take it into account, but is not legally required to follow it.
Email your non-binding nomination to: hello@vervesuper.com.au
2. Non-Lapsing Binding Nomination
This is a legally binding instruction. If the nomination is valid, we must follow it. This option provides more certainty for you and your beneficiaries.
Post your binding nomination form to:
Verve Super, GPO Box 2753, Brisbane QLD 4001
Where to find the forms
Both types of forms are available here.
It only takes a few minutes to complete, and could make a huge difference to the people you love.
Need help?
If you've got questions about nominating beneficiaries – or want to make sure your super is aligned with your wishes – we're here for you.
1300 799 482.
You can also speak to a Verve Coach or your own licensed financial adviser for personal guidance.