Don’t leave the future to chance

Controlling who receives your benefit

If you want control over exactly who receives your super benefit and in what proportion, you need to make a ‘Binding death benefit Nomination’. You can nominate one or more beneficiaries and the proportion of your benefit they will each receive.¹

If you don’t make any nominations, or only make a ‘Non-Binding Nomination’, ultimately the ESSSuper Board will determine who your benefit goes to. This usually means taking into account your dependants. family situation and any non-binding nominations you may have made.

What the experts say

NThe ESSSuper Claims Team say it is important to understand that without a Binding Nomination, a ‘death benefit’ from your super does not automatically become part of your Estate to be allocated as part of your Will. If there is no Binding Nomination, ESSSuper has to investigate all the possible claimants, including partners, ex-partners (where a divorce has not been finalised), children, step-children and anyone else who could be financially dependent on the deceased member. And you can imagine that can become complex and lead to disputes.

A drawn out process

In cases where there are competing beneficiaries, often when there are adult children contesting a current partner, apportioning the benefit can be challenging. There is no magic formula to work out how much of the benefit should be distributed to each beneficiary. Contesting decisions around death benefits can lead to a drawn out process.

First the matter is heard by the ESSSuper Board’s Benefits & Service Committee, and then potentially VCAT. When the ESSSuper Claims Team is involved in cases that go to VCAT, they report that all too often emotions run high and the outcome is a compromise for the beneficiaries, so that ultimately, nobody is happy with the result.

One simple thing you can do now

It only takes 10 minutes to fill out a Binding Nomination form for your super. It removes the complexity and generally leads to a shorter, simpler process of administering the death benefit. More importantly, it can potentially save your loved ones months of anxiety and stress if there is a disputed claim.

To make a Binding Nomination, you need to complete the appropriate form for your fund. This is the best way to control how your super is allocated. However, a Binding Nomination is only valid for three years, so it’s important you keep it up to date. If you have multiple ESSSuper accounts, you will need to nominate beneficiaries for each account.

Seek advice before making decisions

Of course everyone’s situation is different and the implications of estate planning can be complex. It’s a good idea to get legal and financial advice before making any major decisions. ESSSuper Financial Planners² are able to help you with estate planning. Simply contact us if you’d like to set up a meeting.