Nominating a beneficiary can help your super, pension or any insurance proceeds go to the right person, or people, after you die. Here are some things you need to know.
You’ve worked hard to build a nest egg. But what happens to your money when you die?
Nominating a beneficiary gives you a say in who’ll receive your money, providing you with peace of mind that you’re continuing to look after your loved ones. If you haven’t nominated a beneficiary, or if you make a non-binding nomination, we’ll use our discretion to decide who receives your super and/or insurance payout after you die.
It’s also important to check your nominated beneficiaries from time to time to make sure they still reflect what’s happening in your life. Have you found a new partner or had a child? Or has an important relationship ended? If so, it may be time to think about updating your beneficiaries.
There are a few different options when it comes to beneficiary nominations, each with different requirements and restrictions.
A binding nomination requires Hostplus to pay your remaining super or insurance benefit to the person, or people, that you’ve nominated. It requires a bit more paperwork, and you’ll need two witnesses who aren’t nominated beneficiaries to sign your form, but it gives you greater certainty.
This type of nomination is valid for three years from the date your form is signed. A valid beneficiary can be your spouse, your child (of any age), a dependant, or your legal personal representative.
A non-binding nomination allows you to state who you’d prefer your super or insurance to be paid to, but it’s not legally binding. While we’ll take your nomination into account when we identify beneficiaries, we’ll also consider factors such as your relationship with potential beneficiaries and any financial dependants. As a result, we’re not required to follow a non-binding nomination.
When you open a Hostplus Pension account, you can make a reversionary nomination. This allows you to nominate someone who’ll receive ongoing pension payments from your account after you pass away.
You can only select one beneficiary, and they must be your dependant. In addition, you can only nominate a reversionary beneficiary when you open a pension account - if you want to change your nomination, you’ll need to close your account and open a new one.
For binding and non-binding nominations, you can nominate as many beneficiaries as you’d like.
Non-binding nominations can be anyone, but we’ll have the final say over which of your beneficiaries will receive your benefit (even if you haven’t nominated them), and in what proportions.
Binding nominations need to fall into one of these categories:
You can only nominate one beneficiary as a reversionary nomination, and they must be either a partner or spouse, a child (as long as they’re under 25 years of age and financially dependent on you, or they have a permanent disability), a financial dependant, or an interdependent person. You can’t nominate your legal personal representative.
To make sure your binding nomination is valid, there are a few steps you need to follow:
Locked Bag 5046
Parramatta NSW 2124
To make or change a non-binding nomination:
A reversionary beneficiary can only be nominated at the time you open a new Hostplus Pension account. If you want to change your nomination, you’ll need to close your pension account and open a new one.
Nominating a beneficiary is a big decision that can have legal, financial and tax implications – so you may want to consider getting advice from a lawyer or licensed financial adviser.
Our expert financial planners can help you understand your options and plan for a positive future.
Hostplus has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL 232514 to facilitate the provision of personal financial advice to members of Hostplus. Advice is provided by financial planners who are Authorised Representatives of IFS. Fees may apply for Comprehensive Financial Advice, further information about the cost of comprehensive advice is set out in the relevant IFS Financial Services Guide, a copy of which is available from your financial planner.