Super not treated as a regular asset in will
WHEN it comes to passing-on your super money, you need to put plans in place so the right people end up with it when the time comes.
You would probably rather be doing something other than thinking about your mortality. But because your super can become a significant amount of money, you will want to make sure it goes to the right people when you die.
Like many people, you may not know that when you die your super money will not be covered by your will. That is because you do not technically own your super money in the same way as an asset held in your name, and your will only covers the assets you have in your name.
So how can you make sure the people you choose end up with your super money?
When it comes to leaving your super to your chosen beneficiaries, there is much to consider. While in your will you are able to leave an asset you hold in your own name to anyone of your choosing, super is different.
Not everyone is eligible to receive your super money directly from the super fund. We can help you understand who you can leave your super to — you may find only your spouse and children are eligible.
However, if you want to leave your super to someone who is ineligible, you may be able to pass your super through your estate to that person.
We can help determine whether and how you may be able to do this.
These days, when it comes to estate planning most people understand the importance of having a valid will and revising it at regular intervals.
When it comes to your super, an arrangement you put in place that ensures the trustees of your super fund will be bound by your wishes can lapse.
So as with your will, you generally need to review your super beneficiaries and your arrangements — every three years or so — to make sure they remain valid, and that the trustees of your money are bound by your wishes.
There is much to consider when it comes to leaving your super behind. Seek professional assistance to make sure your final wishes are met and that your assets are passed on in the most tax effective manner.