14. Nominating your beneficiary(s)

Ensuring your beneficiary nomination is up-to-date and appropriate is important. You could save your family from unnecessary problems in the event of your death.

• Who you can nominate
• Different types of nominations
• How to make a nomination

Who you can nominate as a beneficiary

Dependants
Your dependants may include:

• your spouse (including de-facto)
• children (including step, ex nuptial and adopted children)
• any person who the Trustee considers was dependant on you for maintenance or support
• any person who shares an interdependency relationship with you

An interdependent person is someone you:

• have a close personal relationship with
• live with¹
• provide with financial support or get financial support from, and
• provide with domestic support and personal care or get domestic support and personal care from.

¹ Dependency can also arise if two people have a close personal relationship but don’t live together or provide each other with financial support or personal care because of physical, intellectual or psychiatric disabilities.

Legal personal representative or estate
You may nominate your legal personal representative (the executor or administrator of your estate) or estate. If you do this, your super benefit will be paid into your estate and distributed according to your will².

When deciding who you would like to receive these benefits, consider the difference between a payment going directly to a dependent or via your estate. If a payment is made to an individual it does not form part of your estate. Payments made to your estate can be subject to family provision claims (challenges to your will) and to claims from your creditors. Any payment made directly from your super fund to a dependent cannot be subjected to these claims.

² If you make a preferred nomination the Trustee will use its discretion to decide how your benefit will be paid.

Different types of nominations

Russell SuperSolution Master Trust (Russell SuperSolution) offers two types of beneficiary nomination.

Preferred nomination
A preferred nomination is not binding on the Trustee of the Fund. If you die, the Trustee will collect all the relevant information about your personal situation before deciding who the benefit should be paid to. The Trustee will consider the wishes you expressed in your nomination as part of this process. It is possible that your benefit will not be paid as you had nominated.

Example
Tom nominates his current spouse to receive his full benefit. Before his death, Tom and his spouse separate and he forms a new de-facto relationship. A child is born from the new relationship. Tom has not updated his beneficiary nomination, and is still legally married.

When the Trustee considers Tom’s personal situation and nomination, it is decided that it is no longer appropriate to pay his full benefit to his spouse. Instead the benefit is split between his de-facto, child and the separated spouse.

Binding nomination
A binding nomination is binding on the Trustee of the Fund. So long as valid beneficiaries are nominated, your benefit will be paid as you instruct. A binding nomination can result in a faster payment, because the Trustee must simply confirm that your nomination is valid before paying your benefit.

Let’s consider the same example
When the Trustee considers Tom’s nomination, it is found that it is still valid. Tom is still legally married, and therefore his separated spouse is a dependant. His benefit must be paid to his spouse, and his de-facto and child receive nothing.

Keeping your nomination up-to-date
It is important to keep your nomination up-to-date so the right people receive your benefit. A binding nomination can be very effective because you can be sure how your benefit will be paid, and that it will be done as quickly as possible. The downside is that if you have not updated your nomination it may no longer reflect your wishes.

Binding nominations expire every three years. If the binding nomination expires, the nomination remains in place but becomes a preferred nomination. You should update your nomination at least every three years to keep it binding, and when your circumstances change.

How to make a nomination

Check your current nomination on your most recent Russell SuperSolution statement, or log in to SuperSolution. If you would like to change your nomination simply complete Your Nomination of Beneficiaries Form and return it to us or call our Helpline on 1800 555 667.

If you’re making a preferred nomination you can also do so online or over the phone.

When making a binding nomination, you must send in Your Nomination of Beneficiaries Form as two people are required to witness your signature. Both people must see you sign the form and sign and date their sections immediately afterwards. The witnesses should not be nominated as beneficiaries or be eligible to be beneficiaries.

Issued by Total Risk Management Pty Ltd ABN 62 008 644 353, AFSL 238790, RSE L0000260, (“TRM”). This document provides general information only and has not been prepared having regard to your objectives, financial situation or needs. Before making an investment decision, you need to consider whether this information is appropriate to your objectives, financial situation and needs. The information has been compiled from sources considered to be reliable, but is not guaranteed. Any examples have been included for demonstrational purposes only and should not be relied upon for the purpose of making an investment decision. Past performance is not a reliable indicator of future performance. An invitation to apply to join the Russell SuperSolution Master Trust is made by TRM in a Product Disclosure Statement (“PDS”). Any potential investor should consider the latest PDS in deciding whether to acquire, or to continue to hold, an investment in Russell SuperSolution. The PDS is currently available by phoning 1800 555 667 or by visiting www.russell.com.au. TRM is part of the Russell Investment Group (“Russell”). Russell or its associates, officers or employees may have interests in the financial products referred to in this document by acting in various roles including broker or adviser, and may receive fees, brokerage or commissions for acting in these capacities. In addition, Russell or its associates, officers or employees may buy or sell the financial products as principal or agent.

Website: www.russell.com.au   Helpline: 1800 555 667     Email: yoursupersolution@russellsuper.com