What is Estate Planning?
Estate planning provides you with peace of mind that your affairs will be in order if you become incapacitated or die unexpectedly.
Estate planning encompasses:
Consideration of an Estate Plan depends upon:
No matter how simple or complex your family or financial affairs, we can assist to help you plan your estate. Our planners work with an estate planning specialist to devise the best strategy for you and your estate, and to help you ensure your wishes are met when you’re no longer around.
Superannuation Death Benefits:
Your superannuation is likely to be one of your most valuable retirement assets. However, you may not realise that it does not automatically become part of your estate on your death.
What is a death benefit nomination?
A superannuation fund may permit a member to give a notice to the trustee of the superannuation fund requesting the member’s benefit to be paid at their death to either the member’s estate or their dependants specified in the notice. The notice may be either a binding nomination or a non-binding nomination.
What is required to make the nomination ‘binding’?
In a public superannuation fund, a member’s death benefit nomination is binding if each of the following conditions is met:
A nomination made in this manner will also bind a trustee of a self-managed superannuation fund. However, these funds usually have the advantage that the governing rules of the fund may allow a member to bind the trustee to pay a death benefit in accordance with the fund’s rules without the requirements to renew the nomination every three years and have the nomination witnessed.
What are the advantages of a binding nomination?
A binding nomination gives you certainty that your superannuation benefit will be transferred in accordance with your wishes. If you have planned your estate to achieve particular outcomes, a binding nomination can ensure your superannuation benefits flow into your estate and allow the estate planning strategy to be carried out. Alternatively, a binding death benefit nomination can be used to direct superannuation benefits away from your estate, reducing the likelihood of claims against your estate by disgruntled beneficiaries or creditors.
When should a binding nomination be reviewed?
Your binding death benefit nomination, like your Will, should be kept up to date so that it reflects your current estate planning strategy and takes into account changes to your circumstances and those of your intended beneficiaries. However, unlike your Will, a binding nomination provided to the trustee of a public superannuation fund will generally lapse if it is not confirmed or amended within three years, leaving the distribution of your superannuation benefits to the discretion of the trustee of your superannuation fund.
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Monday 17th June 2013 at 12 noon
Navigating The Centrelink Age Pension System
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