Establishing Your Estate Plans

Establishing Your Estate Plans
Wills & Estate
Establishing Your Estate Plans - Point B Planning

The importance of having your estate planning in order

Why should I make a binding death benefit nomination?

The main reason for making a binding death benefit nomination is for certainty. It enables you to nominate exactly who gets your super. This will result in more efficient estate planning and can prevent disputes over your death benefits. Who can I nominate?

For your binding death benefit nomination to be valid, each nominated beneficiary must be your Dependant as defined below, or your Legal Personal Representative (generally the executor of your will or the administrator of your estate). Definition of Dependant A Dependant includes:

  • Your current spouse (including de facto spouse) of either gender,
  • Your children of any age (including adopted children, stepchildren and your spouse’s children),
  • Someone who is financially dependent on you, or
  • Someone with whom you have an ‘interdependency relationship’.

Two people have an ‘interdependency relationship’ if:

  • They have a close personal relationship; and
  • They live together; and
  • One or each of them provides the other with financial support; and
  • One or each of them provides the other with: – domestic support and personal care, but not if one of them provides domestic support and personal care to the other under an employment contract or a contract for services or on behalf of another person or organisation such as a government agency, a body corporate or a benevolent or charitable organisation; or – support or care of a type and quality normally provided in a close personal relationship, rather than by a mere friend or flatmate. Two people also have an interdependency relationship if they have a close personal relationship but they do not meet the other requirements of interdependency because:
  • due to either or both of them suffering from a disability including a physical, intellectual or psychiatric disability, or
  • they are temporarily living apart. Important: A Dependant must be alive and meet the definition of Dependant immediately before your death. If a nominated beneficiary is not your Dependant or your Legal Personal Representative, the portion of the benefit to be paid to that nominated beneficiary will be paid as if there is no valid binding death benefit nomination.
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