Super funds usually offer two main ways of nominating beneficiaries for your superannuation proceeds. These are:
Non-binding nominations
Non-binding nominations are a form of nomination where the Trustee of your super fund will give consideration to your wishes when distributing your death benefit, but the final decision rests with them. Such nominations may be appropriate in circumstances where you control a self-managed super fund, with your partner as a Trustee of the fund and you are content for them to make the final distribution decision. As the name suggests, such nominations are not binding on your Trustee.
Typically, you can make non-binding nominations quite quickly and easily by calling, emailing or writing to your super fund.
Binding nominations
In contrast to non-binding nominations, as long as you make a valid binding nomination, the Trustee of your super fund is legally bound to pay the proceeds of your death benefit to your nominated beneficiary.
Each super fund will have their own forms and processes for registering your binding nomination, which typically include such documents to be executed and witnessed in a similar way to your last will. Unlike your will however, these nominations generally need to be renewed every three years.