14/10/2026
“Binding” doesn’t always mean the nomination will work.
This week I was reminded just how important it is to understand your superannuation death benefit nomination.
I saw a client who is single and has no children. She had completed a binding death benefit nomination leaving her superannuation to her sister.
At first glance, it looked like everything had been taken care of.
The problem? Her sister was not financially dependent on her and, on the circumstances discussed, may not fall within another category that allows the super fund to pay the death benefit directly to her.
Simply being your parent, brother, sister or another relative does not automatically mean they can receive your superannuation directly.
And the fact that your super fund has accepted your nomination form does not necessarily mean the person you nominated will ultimately be legally entitled to receive the benefit.
Superannuation law restricts who can receive a death benefit directly. Depending on your circumstances, another option may be nominating your Legal Personal Representative, so that the benefit is paid to your estate and dealt with in accordance with your Will.
This is particularly worth thinking about if you are:
single, have no children, and want your super to ultimately benefit parents, siblings, nieces, nephews or other family members.
Don’t just complete the nomination form. Understand what it actually does.
Your superannuation can be one of your largest assets — particularly when insurance is attached to it — and it deserves to be considered as part of your overall estate plan.
If you are unsure whether your superannuation nomination will actually achieve what you intend, get in touch to arrange an appointment.
Lisa Schutz | Barrister & Solicitor
Wills • Estates • Estate Planning
Mobile appointments across Adelaide
General information only. Individual circumstances and super fund rules differ and specific advice should be obtained.
