For many Australians, superannuation will become one of the largest assets they accumulate during their lifetime.
Yet there is one important difference between super and many other assets: your super does not automatically form part of your estate or pass according to the instructions in your will.
That means simply naming someone in your will may not be enough to determine who ultimately receives your superannuation when you die.
Recent research highlighted by ABC News estimates that around 15.7 million Australians may not have a binding death benefit nomination in place, leaving the trustee of their super fund with greater discretion over how their death benefit is distributed.
According to Heath Visser, Financial Adviser & Partner at Halpin Wealth, it is an area that can easily be overlooked.
“People often spend a lot of time making sure their will is up to date, but assume their super will simply follow those same instructions,” Heath says.
“That is not necessarily the case, which is why super nominations need to be considered as part of the broader estate planning conversation.”
Your super does not automatically follow your will
Superannuation is generally held in trust by your super fund, rather than being owned by you in the same way as money in a bank account or a personally held investment.
When a member dies, the fund trustee is responsible for paying the member’s super balance and any associated insurance benefits.
How much discretion the trustee has will depend partly on whether the member has made a valid death benefit nomination and what type of nomination is in place.
This distinction can become particularly important where there are complex family relationships, estranged relatives, blended families or different expectations about who should receive the money.
“Estate planning is ultimately about making your intentions as clear as possible,” Heath says.
“If there is ambiguity around a significant asset such as super, it can create additional stress for family members at what is already a difficult time.”
What is a death benefit nomination?
A death benefit nomination tells your super fund who you would like to receive your superannuation death benefit.
However, not all nominations operate in the same way.
Binding death benefit nomination
A valid binding death benefit nomination is generally a legally enforceable direction requiring the trustee to pay your benefit to the eligible beneficiary or beneficiaries you have nominated.
Eligible beneficiaries are restricted under superannuation law, so you can’t necessarily nominate anyone you choose directly. Depending on your circumstances, you may also be able to nominate your legal personal representative, which can result in your super being paid to your estate and dealt with under your will.
“It is important to understand both who you want to benefit and the most appropriate pathway for getting the money to them,” Heath says.
“In some situations, paying super directly to a beneficiary may be appropriate. In others, directing it through the estate may better align with the overall estate plan.”
Non-binding nominations
A non-binding nomination records your preference, but it does not necessarily require the trustee to follow it.
The trustee retains discretion over the payment of the death benefit and will consider the member’s circumstances and the requirements of superannuation law before making a decision.
There was a recent public case where a member had nominated two nieces, but because the nomination was not binding, the fund ultimately paid the benefit to the member’s estranged son. The fund acted within the law, but the case demonstrates the difference between recording a preference and creating a binding direction.
That is why knowing that you have “nominated someone” is not always enough.
“You need to know what type of nomination you actually have,” Heath says.
“Two people may both believe they have nominated beneficiaries, but the legal effect of those nominations can be quite different.”
Reversionary nominations for pension accounts
For people already receiving a pension from super, another option may be a reversionary beneficiary nomination.
This arrangement can allow an eligible pension to continue to a nominated death benefits dependant, such as a spouse, following the member’s death.
Reversionary arrangements only apply in certain circumstances and to pension phase accounts, so they need to be considered carefully as part of the retirement and estate planning strategy.
Your nomination may not last forever
Another area that can catch people by surprise is that some death benefit nominations can expire.
Depending on the super fund and the type of nomination, a binding nomination may need to be renewed periodically. Depending on your super fund, nominations may need to be renewed every three years, although some funds offer non-lapsing arrangements.
This means a nomination that was valid when you completed it several years ago may no longer have the same effect today.
It is worth reviewing your arrangements regularly, particularly following major changes such as:
- Marriage or entering a new relationship
- Separation or divorce
- The birth of children or grandchildren
- The death of a nominated beneficiary
- Retirement
- Establishing or closing a self-managed super fund
- Significant changes to your broader estate plan
“Estate planning should not be something you complete once and then forget,” Heath says.
“Families change, relationships change and financial circumstances change. Your nominations should continue to reflect where you are today.”
A simple check can make a big difference
If you are unsure what nomination is currently attached to your super account, a good first step is to check.
You may want to confirm:
- Whether you currently have a death benefit nomination
- Whether it is binding or non-binding
- Who you have nominated
- Whether those beneficiaries remain appropriate
- Whether the nomination has an expiry date
- Whether your fund offers a non-lapsing binding nomination
- How the nomination fits with your will and wider estate arrangements
Not every super fund offers the same nomination options, so it is important to understand the rules that apply to your particular fund.
The aim is not simply to complete another form. It is to make sure your wealth is structured in a way that gives your loved ones greater clarity and helps your wishes be carried out as intended.
Source: This article was adapted from “More than 15.5 million Australians could have no say in who inherits their superannuation”, written by Nassim Khadem and published by ABC News on 10 August 2026.
Make sure your super reflects your wishes
Superannuation can form a significant part of your family’s wealth, so it deserves the same attention as your will and other estate planning arrangements. Halpin Wealth can help you review your super nominations, understand how they interact with your broader financial plan and identify where legal advice may also be needed.
If you are unsure whether your nominations are current or appropriate, contact our team to arrange a review.
This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.