At Financially Sorted, we understand that planning for the future is a crucial aspect of financial well-being. So, what happens to your super when you die? The treatment of your superannuation after your death depends on several factors, such as your age, the type of superannuation account you have, and the beneficiaries you have nominated.
There are many different type of Superanuation accounts. If you pass away while you still have superannuation in your account, the following may occur:
1. Your super fund pays a lump sum to your dependents or legal representative
If you have a valid binding death benefit nomination or your super fund trustees consider the people you nominate to be your dependents, your super fund may pay a lump sum to your nominated beneficiaries or your legal representative. Always keep up to date as how much you are entitled to get. There has been recent changes on how Superannuation is taxed upon death. This will lead to providing financial support to your loved ones during a challenging time.
2. Your super fund pays your superannuation to your estate
If you do not have a valid binding death benefit nomination or the people you nominate are not considered to be your dependents, your super fund may pay your superannuation to your estate. This means that the money will be distributed according to your Will or the intestacy laws if you do not have a valid Will.
3. Your super fund pays out a pension to your dependents
If you have a superannuation account-based pension, your dependents may be able to continue to receive pension payments after your death. This can provide loved ones ongoing financial support. Leading them to maintain their quality of life.
About Financially Sorted
At Financially Sorted, we are committed to helping individuals and businesses achieve financial success. With extensive experience in various areas of finance, including taxation, accounting, and business compliance, our team of experts provides personalized and comprehensive solutions tailored to your needs. Leading to ensuring that you receive top-notch financial guidance and support.
It’s important to note that the taxation treatment of your superannuation after your death can also vary depending on the circumstances. It’s recommended that you seek professional advice from a licensed financial advisor or accountant to understand your options and ensure that your superannuation is distributed in accordance with your wishes.
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