Can Superannuation Be Left in a Will?

Planning for the future is a crucial part of financial health, and understanding how your assets will be distributed after your passing is a key aspect of that planning. One question we often encounter is, “Can superannuation be left in a will?” The answer isn’t as straightforward as you might think due to the unique nature of the Australian superannuation system.

What is Superannuation?

Superannuation, often referred to as ‘super’, is a long-term savings arrangement that operates primarily to provide income for retirement. Superannuation involves employers, employees, and often the self-employed, contributing money into a super fund. Over time, and with the magic of compound interest, this nest egg grows to provide a source of income later in life.

Superannuation and Your Will

Contrary to what many people believe, your superannuation doesn’t automatically become part of your estate when you die, and therefore it isn’t something that can be included in your will. This is because superannuation is held in a trust and is subject to specific rules for distribution upon death.

Nominating a Beneficiary

While you can’t directly include your super in your will, you can influence where your super goes when you die by making a binding death benefit nomination. This is a legal document that binds the trustee of your super fund to pay your super benefit to the person(s) you nominate, provided they are eligible.

The Role of a Financial Adviser

Navigating the complexities of superannuation and estate planning can be challenging. That’s where a financial adviser comes in. A financial adviser can provide valuable guidance, helping you understand the rules and regulations around superannuation, and ensuring your wealth is distributed according to your wishes.

At Willow Wealth Partners, we’re committed to providing personalized financial advice tailored to your unique situation. Our team of experienced advisors can help you understand how superannuation fits into your estate plan and guide you through the process of making a binding death benefit nomination.

Book in a Complimentary 30-Minute Meeting Today

Ready to take control of your super? Book a complimentary 30-minute meeting with one of our Financial Advisers today. We’re here to help you understand your super and plan for a comfortable retirement.

Please note that this article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and seek professional advice before making any investment decision.

This information is true and correct as of 1 July 2024, prior to making any changes we recommend you read the Government resources and seek Financial Advice prior to making any changes.