The One Superannuation Mistake That Could Leave Your Family in Chaos

Let me set the scene.

You're sitting on the couch, scrolling on your phone, sipping your coffee… and boom — a thought hits you out of nowhere:

“Wait… who actually gets my super if something happens to me?”

Most people have no idea.
And honestly?
It’s not their fault — because superannuation is not dinner-table conversation.

But the reality is:
Your super is often one of your biggest assets.
And if you haven’t told your fund exactly who should get it… someone you absolutely did not intend could end up with it.

Yes, even your ex.

Now that I’ve scared you just a tiny bit (in a loving way), let’s talk about one of the most important documents you probably didn’t know you needed:

A Binding Death Nomination.

So… what exactly is a Binding Death Nomination?

Think of it as a tiny-but-mighty legal instruction sheet that tells your super fund:

“When I die, please give my super to this person or these people.”

It’s kind of like a will…
But specifically for your superannuation only.

And the key word here is:

Binding.

As in:
Your super fund must follow it.

No guessing.
No “well, maybe she would’ve wanted…”
No trustee flipping a coin between your partner and your adult child.

They have to follow what you’ve written as long as it’s valid and witnessed properly.

Quick detour: “But Stacy, isn’t this covered in my will?”

Short answer: Nope.
Long answer: Absolutely not unless you specifically nominate your estate.

Superannuation sits outside your will.

So you can write the most beautiful, detailed will on earth…
But if you don’t have a valid binding death nomination, your super fund trustee decides who gets your super.

Spoiler alert: they won’t always choose the person you’d choose.

The scenarios that break my heart — because they are 100% avoidable

1. You’re separated… but not divorced yet

If you pass away before your divorce is final and you haven’t updated your nomination:

Your super could still go to your ex.
Even if that’s the last thing you want.
Even if you haven’t spoken in months.
Even if you’ve moved on.

This one hits people like a brick.

2. Blended families

If you’re in a new relationship and you have kids from a previous one, things can get… tricky.

A binding death nomination gives your super a clear direction, so your partner and your children don’t end up in a tug-of-war.

3. You want control

You worked hard for your super.
You want it to go where you intended.

A binding death nomination is the cleanest, simplest way to lock in your wishes.

The three types of nominations (and why one is the “gold standard”)

1. Binding Death Nomination

✔ The “gold standard”
✔ Legally binding
✔ Must follow your instructions
✔ Usually lasts three years (you need to renew it)

2. Non-Binding Nomination

More of a suggestion.
The trustee can still make the final call.

3. Non-Lapsing Binding Nomination

Binding and doesn’t expire.
Great if your circumstances are stable.
Not great if you think things may change — because updating these can be a pain.

Common mistakes I see ALL the time

• Forgetting to update it after a breakup, new relationship, new baby, or life change

• Letting it expire (most lapse after three years)

• Not checking if it’s valid (hello, incorrect witnessing!)

• Assuming your will handles it (it doesn’t!)

These aren’t small mistakes — they can completely change who receives your super.

So how do you actually set one up?

Don’t worry — this part is easy.

1. Contact your super fund
Most of them have the form online.

2. Decide your beneficiaries
Spouse, kids, dependent, or your estate.

3. Get two adult witnesses
They must be over 18 and not beneficiaries.

4. Submit it & keep a copy
Throw one in with your will.

5. Set a reminder every three years
Life changes. Your nomination should too.

A binding death nomination is one of the most loving things you can do

It cuts out drama.
It avoids conflict.
It gives your family clarity when they need it most.

And if you’re going through a separation or blended family situation, this is even more critical.
Do not wait for a divorce to be finalised. Update it now.

You deserve peace of mind — and your family deserves clarity.

Want the full, deeper explanation?

This entire episode breaks it down in my signature real-talk style — simple, practical, and absolutely essential.

Listen to the full episode of The StacyM Show
Spotify | iTunes | YouTube
(or wherever you get your podcasts)

Need personalised guidance?

I help women navigate separation, property division, and emotional clarity inside my program Empowered Separation - your roadmap to a smoother (and cheaper) divorce.

Book a consult or learn more at stacymunzenberger.com