Nominating a beneficiary can help make sure your benefit, including your account balance and any insurance cover you’re entitled to, goes where you want it to in the event that you pass away. You can make a non-binding, or a binding nomination, and you can only nominate certain people as your dependants.
Super tip: By law, superannuation isn’t automatically considered a part of your estate. One way to ensure your benefit is paid to the people you choose, is to nominate the executor of your estate as a binding beneficiary. Then, if you include the relevant provisions in your will, your super will be distributed according to your wishes.
Find out more about the rules in our Nominating Beneficiaries factsheet.
How to nominate a beneficiary
To make your nomination binding, two people who are over the age of 18, who are not beneficiaries, must witness your declaration.
Nominate a beneficiary online
Log in to your online account, go to the Manage my beneficiaries page and follow the prompts.
Complete a form
Download and complete the Nominate your beneficiaries form, complete it and return it to is via email or post.
Why nominating a beneficiary matters
If you haven’t made a valid binding death benefit nomination before you pass away, your super fund determines how your super gets distributed. By making a nomination you have a say in who’ll receive your benefit, so it’s important to plan ahead and have a valid nomination in place for when it counts.
Binding or non-binding beneficiary?
If you have a super account, you can nominate your beneficiaries in two ways; a binding or non-binding nomination. Please note, pension account holders can only make a binding nomination.
Binding
If you choose to make a binding nomination (and complete the relevant form correctly) your nomination will be binding. This means we must pay your benefit to the beneficiaries you’ve nominated when you pass away, as long as they meet the definition of ‘dependant’ under superannuation law (at the date of your death) or are your Legal Personal Representative.
Remember, binding nominations will remain in place for three years and will need to be renewed before they expire. We’ll remind you when it’s time to do this.
Non-binding
You can also make a non-binding nomination. In that case, we’ll consider your nomination but it won’t require us to pay your super to those you nominate. This is because there are other things we need to consider, such as the financial circumstances of your dependants. This might include whether or not they would have expected you to continue providing for them financially.
Non-binding nominations do not expire, however it’s good practice to regularly review your beneficiaries, especially when your circumstances change.
Read the Choosing a beneficiary article to learn the answers to the top five questions when it comes to choosing who’ll receive your super or pension benefit when you pass away. It also covers helpful case studies to show the importance of a (binding) nomination, including updating it when your circumstance change.
Things to consider
Your nomination will continue to apply unless you cancel or change it (or, if you make a binding nomination, it expires), so it’s important to update it if your circumstances change, such as separating from your partner, marrying or having children.
If you’re unsure, don’t forget we’re here to help. You can give us a call on 13 64 63 or email help@mine.com.au.
If your needs are more complex, we can put you in touch with a financial adviser from Mine Super Financial Advice.