Superannuation is a significant asset for most people and reviewing your Beneficiary Nominations in your superannuation fund is an important part of thorough Estate Planning.

Thought should be given to how your beneficiaries will receive these monies – either directly from your Super Fund or via your Estate. Most people do not realise that superannuation death benefits do not automatically form part of your Estate. If you want your Will to be the document that governs distribution of these assets, then you have to make a nomination directing the funds to be paid into your Estate.

Careful structuring of your nominations can significantly reduce or even remove potential taxation liabilities.

You also need to ensure that vulnerable beneficiaries receive their inheritance in a form that they can manage. In these cases, it may be best to nominate your Legal Personal Representative as the beneficiary of your Estate. This way the death benefits are governed by the terms of your Will, and can be applied to any protective trust created for that vulnerable family member.