What is a beneficiary?

16 August 2021

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When it comes to superannuation, you may have heard the term ‘beneficiary’ referenced. But do you know what it means, and how important it is?

A beneficiary is a person you nominate to receive your superannuation benefits if you die. Superannuation isn’t covered by a will, so to ensure your super and any insurance benefit goes to who you want it to in the event of your death, you must nominate a beneficiary through your super fund, otherwise the super fund Trustee will decide who receives your death benefit.

If your situation changes, take a moment to review your beneficiaries to ensure that they are still appropriate.

Non-Binding
A non-binding nomination is not binding on the Trustee, so it acts as a guide only. The Trustee will take your nomination into consideration, but it is the Trustee who makes the final decision. It’s quick and easy to make a non-binding nomination, log into MemberAccess.

Binding nominations
A binding nomination means the Trustee is bound by the nominations you make as long as your binding nomination is valid. Your binding nomination remains valid for three years and needs to be re-confirmed/updated to remain valid. To make a binding nomination, you must complete and sign a Binding Death Nomination form in the presence of two witnesses. Your Annual Statement shows whether you have a valid nomination in place.

Child income beneficiary
Your benefit will be paid into a Child Income account for your dependent children. To create a Child Income beneficiary a Binding Death Benefit Nomination to a Child Income account form must be completed and signed by two witnesses.

Go here for more information about updating your beneficiaries or call us on 1800 692 877.

 

 

 

 

This information is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Prepared by BUSS (Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).

 

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