A binding death benefit nomination can stop being binding if it lapses. Whether yours expires depends on the type of nomination you made and your super fund’s rules, so it is worth checking now.
Your super does not automatically form part of your estate. A binding nomination tells your fund who must receive it, but only while the nomination is still valid.
Many funds offer a lapsing nomination. Under the super rules, it generally stops having effect three years after you first sign it, or last confirm or change it. Your fund’s rules can set a shorter period. Some funds also offer a non-lapsing nomination, which does not expire unless you change or revoke it.
If a binding nomination lapses, funds normally treat it like a non-binding nomination. That means the trustee can decide who receives your super, and the result may not match your wishes.
Self-managed super funds work differently. Whether an SMSF nomination lapses depends on the fund’s trust deed and the nomination itself.
Look at your latest super statement or log in to your online account. It should show the type of nomination and when it was made or last confirmed. If it has lapsed or will soon, contact your fund to renew it or make a new one, and follow the signing and witnessing instructions closely. Mistakes can make a nomination invalid.
It also pays to check that your nomination still fits your will and family situation. Our estate planning lawyers can review both together.
If you are reviewing your estate plan, speak to an estate planning lawyer in Sydney. Our wills and estates team in Edgecliff offers a free consultation.
