Updated on 4 November 2024
3 minute read
Most of us don't like thinking about what will happen when we die. But it's important to talk with your loved ones about your super, because it's generally not included in your Will or estate.
When you die, what happens to your super and any insurance you have with your account depends on what you've told us. And how you've told us.
Your super and any insurance benefits may be paid to the person you tell us – your beneficiary. But you need to let us know in a way that's legally valid.
If you haven't told us who should get your super and insurance, it's usually paid to your dependants (e.g. children or spouse).
If you don't have any dependants, your super fund may pay the money to your estate, and the executors or administrators of your Will deal with it.
Your money is taxed differently depending on who gets it and how they want to receive the payout (e.g. all at once or using an Income account).
Unfortunately, your super isn't automatically included in your estate.
But if you tell us your chosen beneficiary or beneficiaries and it's legally valid, then when you die, we'll pay out your super and any insurance benefit to them.
So, make sure both your loved ones and your super fund know whom you want to get your money.
Who should get your super and any insurance when you die is called your beneficiary. This can be more than one person and can include:
A dependant (see below),
Your legal personal representative (the executor of your Will or administrator of your deceased estate).
Your dependant includes:
If you're making a reversionary beneficiary nomination, the rules are the same, except you can't nominate your legal personal representative. If your super fund lets you nominate a child, they must be:
There are 3 different types of nominations for beneficiaries:
You choose who should get your super if you die, and your super fund will do that, as long as it's legally valid. You need to renew your choice every 3 years.
Download formYou choose who should get your super if you die, and your super fund will take that into account, after checking whether you have dependants who need the money. This choice is not legally binding.
Log in to Member OnlineYou choose who should keep getting payments from your Income account after you die, for as long as your account has money in it. You can't make your estate a reversionary beneficiary.
Download formIf you have a binding death beneficiary on your Accumulation or Income account, your beneficiary will get your account balance all at once (lump sum), including any insurance payout.
They can also get the money as regular income payments. But if they’re your child, they can only do this if they are permanently disabled, under 18, or under 25 and still financially dependent on you.
If you have a reversionary beneficiary on your Income account, they can either choose to get income payments from your account as long as the balance lasts, or withdraw your account balance all at once (lump sum).
If someone is your dependant for tax purposes, they will get your super tax-free if they receive it all at once in a lump sum. To find the tax that applies to a super death benefit, check with the Australian Taxation Office (ATO):
If the beneficiary is a dependant for tax purposes If the beneficiary is not a dependant for tax purposesFill in and send us the form to tell us who your binding death beneficiaries should be.
Download formMake sure your loved ones will be financially supported if you die unexpectedly.
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Find out moreThe right choice today could make a big difference to your future. Enjoy the benefits of being with one of Australia's largest super funds.
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