Have you nominated your beneficiaries?

If you die with superannuation still in your First Super account, what happens to it?

It’s easy to assume it will become part of your Will or estate and be distributed with your other belongings and money. But super doesn’t work like this.

There are a few simple steps you can take to make sure your super (and any insurance benefits you have) reaches the people you’d want them to.

Here’s what you need to do.

Nominate a beneficiary

The person you want to receive your super is called a “’beneficiary’”. You can put forward more than one.

You can nominate ‘dependents’. This is generally:

• Your spouse/de facto
• Your children
• ‘Financial dependents’, which is someone who relies on you (totally or partially) for financial assistance or support. For example, you pay the bills, rent, etc
• Someone you are in an interdependency relationship with. This can be someone who lives with you, where one or both of you provide financial and domestic support, and personal care of the other.

You can’t nominate: parents, siblings or friends (unless they’re dependents).

If the person you want to receive your super can’t be nominated as a beneficiary, don’t worry. While super doesn’t automatically become part of your estate, you can nominate your Legal Personal Representative to receive your death benefit and distribute it. This is the executor of your Will, or the person responsible for administering your estate if you do not have a Will. This gives you more options for who gets your super.

When your beneficiaries receive your super death benefit, different tax rules will apply and this will depend on their relationship to you. More information is available on the ATO website.

Our Nominating Beneficiaries fact sheet has more information about who can be chosen as a beneficiary. Be sure to give it a read so you only nominate eligible people.

Decide what type of beneficiary you want

Once you’ve nominated your beneficiary, you need to decide if you want them to be ‘non-binding’ or ‘binding’ (different rules apply to pensions). Here’s what that means.

Type of beneficiary	What it means	Pros and cons
Non-binding	This is a request only. Ultimately, the Trustee (First Super) decides who gets your super.	Pros Easy to change Doesn’t expire Cons Can be broken if it doesn’t meet super/tax laws. May forget to update if you change your mind about your beneficiary.
Binding	A legally binding request we must follow if you die (provided it is valid).	Pros Locked in for peace of mind so you will know who gets your super. We’ll remind you to update every 3 years and it’s easy to change. Cons Your beneficiaries must be dependents or a Legal Personal Representative. Requires paperwork to set up. Must be signed by two witnesses, and expires every 3 years.

 

Here’s how you can nominate your beneficiary

• For a non-binding beneficiary, log into your firstonline account and go to ‘My Details’ then ‘Beneficiaries’.
• Or complete the relevant sections of our Nomination of Beneficiary form and send it to us (email is fine).

For a binding beneficiary, complete every section of our Nomination of Beneficiary form and post it to us. You’ll need two witness signatures (not the person or people you’re nominating as beneficiaries).

If you don’t have a printer, we can send you a copy of the form.

Need Help?

Choosing a beneficiary for your super is important, but it can be easy to make a mistake if you’re not 100% sure who is eligible to be nominated. If you’ve read our fact sheet and still have questions, please contact us. We’re happy to help get things sorted for you.

Call the Member Services Team on 1300 360 988, use Live Chat or email us mail@firstsuper.com.au.