All right, I'm going to quickly pump this one out. I still have the Halloween thing in, which obviously I don't want, but new layout. um now i don't know where i am okay i can't remember how i took me out really find I really don't find this friendly. You have a moment, Jim, and you want to work out how do I get rid of my skeleton? Go for it. I need to look at the advantages and disadvantages of Riverside and swapping, I think. But I'm not doing that today. How did I do it yesterday? Style. No. I don't even know how to get rid of my overlay. It's like I don't even have an option to not have the overlay. Anyway, all right, I'm going to quickly pump this out before I have to go to school. Hey everyone. Today we are diving into something that might not be the most exciting dinner conversation, but it is absolutely crucial for protecting your loved ones. And that is called a binding death nomination. If you have super, and most of us do, this episode could save your family from unnecessary stress, conflict, and financial heartache down the track. So grab a cuppa, settle in, and let's talk about what a bonded death nomination is and whether you actually need one. Sorry, teleprompter's too slow. So let's start with the basics. A binding death nomination is a legal document that tells your super fund exactly who should receive your superannuation when you pass away. Think of it kind of like a will, but this is specifically for your super only. And here is the key word, binding. When you make a binding death nomination, your super fund must follow your instructions, unless there's something dodgy that's happened in the past, but be expected that they must follow your instructions. They don't have... discretion again pending that there's nothing dodgy and there was no fraud or anything involved so put that aside um but they have to kind of do what you have told them to do they can't decide to give it to somebody else and your wishes are practically locked in So you might be thinking, Stacey, doesn't my will cover this? Well, great question. The answer is, of course, not necessarily. It depends. Super doesn't automatically form part of your estate. It sits outside of your will or your estate unless you specifically nominate your estate as the beneficiary. This means if you don't have a Biden death nomination in place, the Superfund trustee gets to decide who receives your super based on their rules and legislation. And that might not align with what you wanted. Now, there are actually a few different types of nominations that you can make. Okay, so the first one is a binding death nomination. This is kind of what you might call the gold standard. I just made that up, but it's pretty important. It's legally binding for up to three years after which you need to renew it. Your super fund must pay your benefit to the people or whatever you've nominated, like your estate, on your paperwork. The second one is a non-binding death nomination. The second one is a non-abiding deaf nomination. This is more kind of like a suggestion. You tell the fund who you'd prefer to receive your super, but the trustee makes the final decision. They'll consider your wishes, but they're not bound by them. The third one is a non-lapsing binding death nomination. Some funds offer this option. It's binding and it does not expire every three years. You set it once and it stays in place until... You change it or revoke it. But because it's non-lapsing, this isn't ideal if you might need to change it in the future because it can be really difficult to change something that is not meant to be non-lapsing. So definitely consider your options for this one unless you're going to make it maybe payable to your estate or something like that. so who can you nominate it can't just be anyone the law restricts who can receive your super so you may be able to nominate sorry so your spouse including any de facto partners your children including any adult children and stepchildren Somebody who is financially dependent on you. Someone in an interdependency relationship with you. Your legal personal representative, e.g. this could be your estate. If you nominate your estate, your super will be distributed then according to your will. So do you need one? Here's where it gets a little bit personal. Let me share why I think finding death nominations are important, especially if you are going through a separation or a divorce. Scenario one, you're separated, but you're not yet divorced. If you passed away before your divorce is finalized and you haven't updated your binding death nomination, your super could still go to your ex partner. And it's probably not a day on social media. I don't say that this is not happening or is happening. Even if that is the last thing you want, it could still go to your ex. Now this is a critical update to your nomination because you need to make sure that this is updated as soon as you separate if you don't want your ex getting your assets. Scenario two could be blended families. So if you are in a new relationship and you have children from a prior relationship, a binding death nomination may ensure your SUFA is divided the way you attended. Without it, there could be disputes between your current partner and your kids. Scenario three, you want control. You've worked all these years to get all of that money in the super. You want to make sure that it is looked after how you want it to be. So if you value certainty and you want to make sure your super goes exactly where you intended without leaving it up to some random trustees discretion, then yes, I would strongly suggest you look at getting a biting death nomination. Now, let me share some mistakes I unfortunately see and hear about all the time. Forgetting to update it. Life changes, marriages, separation, new children. Your Biden death nomination needs to change with it. Letting it lapse. Most binding nominations expire after three years. If you don't renew it, it then becomes non-binding or possibly even invalid. Not checking if it's valid. Some nominations are rejected because they weren't witnessed correctly or because the beneficiaries don't meet the legal requirements. assuming your will covers it. So as I mentioned, super does sit outside of your estate unless you specifically nominate your estate to be the beneficiary of your super. I need to turn this up a bit. So if you die without a valid binding death nomination, the super fund trustee decides who gets your super. They will look at things like who your dependents are, what your personal circumstances might be, any non-binding nominations you may have made, This can lead to delays, disputes and outcomes that you never intended for. I have seen and heard of families being torn apart over super payouts because they could have been avoided with a simple binding death nomination. So the good news, it is not complicated, I promise. So step one, contact your super fund and ask for their binding death nomination form. Most funds even have them available online. Step two, decide who you want to nominate and in what proportions. For example, you are one fifty percent to your spouse and twenty five percent to each of your two children. For an example. Step three, complete the form and have it witnessed by two adults who are not beneficiaries, who are over the age of eighteen and have sound mind. Step four, submit it to your super fund and keep a copy for your records. Even put a copy in with your will. Step five, set a reminder to review it every three years or whenever your life circumstances may change. Not all super funds may tell you when your binding death nomination is going to expire. Generally, it says on your super statement, but just make sure that you set the reminder just in case. And look, I get it, talking about death is not fun, but I really do want to normalise talking about it because obviously I have seen the worst of it. But here's the thing, a binding death nomination is one of the most loving things you can do for your family. It removes uncertainty, it prevents conflict and ensures your hard-earned super goes exactly where you want it to. And as I've mentioned, if you're going through a separation or a divorce, it is even more critical. Update your nomination now. Do not wait for the divorce to be finalised. And as always, if you need help navigating separation, property division, or maybe even estate planning during this time, remember I have my program, Empowered Separation. It is your roadmap, your proven roadmap to a smoother, cheaper divorce and it covers all the legal essentials you need to know, including super and estate planning. You can find out more about how to work with me from the notes in the show notes below. So I know I've been a little bit more about the past couple of episodes talking about death, but I do thank you for tuning in to today's episode. If this episode has helped you, please share it with someone who also needs to hear it, especially if they're going through a separation or they may have a blended family. Remember though, this is general advice only and you might want to discuss your options with your financial advisor. I can't tell you what to do. I can just give you the instructions as to how to do it. And remember, don't forget to subscribe to my channel on Spotify or Apple Podcasts so you never miss an episode. We are also on YouTube as well. But if you have any questions or topics you would like me to cover, please reach out to me and I will add them on the list of things to do. Please enjoy the rest of your day. Take care. And until next time, remember, I am here to help. You don't have to just survive. I really would love you to thrive. Take care.
