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Estate planning

January 2010

“In the world nothing can be said to be certain except death and taxes…”
Benjamin Franklin, 1817

Estate planning can be a daunting and difficult topic to talk about, but despite any misgivings it is important to plan for what will happen to your assets when you pass away. It doesn’t have to be a morbid task or topic; in fact it can actually be empowering to know that your wishes will be carried out and your loved ones taken care of after you pass away.

What is estate planning?

Estate planning can be more than preparing a will, you may decide to create a trust or even nominate a beneficiary on your super account.

A will

A will is one of the most well known forms of estate planning and is generally best suited to those who solely own their assets. It is a legal document that allows you to choose who should receive all or part of your estate and who should administer it, after you pass away.

If you pass away without a valid will you are said to have died ‘intestate’. Put simply your estate will be distributed by a court-appointed administrator to your next of kin according to state-based legislation. If the administrator cannot establish who your relatives are, your estate may be passed to the state.

Intestacy rules can result in your assets being distributed against your wishes. Today’s family structure is often complicated and estate planning is essential in cases where assets need to be divided between family members.

Death benefit nominations

It’s important to provide the trustee of your super fund with instructions of how you would like your super benefit to be distributed. You can choose to make a binding or non-binding nomination.

A binding death nomination allows you to nominate dependents that you wish to see your super paid to and in what proportions. These people can be any combination of your dependants or your legal personal representative. A binding nomination is just that, the Trustee is bound to allocate your super as on your nomination form. But, it’s important to remember that this form will need to be renewed or updated every three years.

A non binding nomination is more of a guide for the Trustee, which is required to consider all your dependants before making a decision about how to distribute your benefit. However the Trustee is not bound by your nomination.

Making a binding or a non binding nomination is easy simply click here to be redirected to the relevant forms. Fill in the form for the type of nomination you would prefer. Once you complete it, simply return the form to us.

It’s important to seek appropriate licensed financial advice or legal advice when it comes to estate planning. However in the interim if you’d like to consider making a binding or non-binding beneficiary nomination in relation to your super, simply click here and be directed to the Beneficiary nomination form.

Important information
This material does not contain financial product advice and you should contact a financial adviser before taking any action based on the information contained in this material.
An interest in the Plum Superannuation Fund ABN 20 339 905 340 (Fund) is issued by the PFS Nominees Pty Ltd (Trustee) ABN 16 082 026 480 AFSL 243357 (Trustee). The Fund administrator is Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Administrator). This material has been prepared by the Administrator and it contains information that is general in nature. The information does not take into account your objectives, financial situation or needs. Before acting on the information you should consider whether it is appropriate having regard to your personal circumstances and seek professional advice. The Administrator recommends that you consider the Fund’s Product Disclosure Statement (PDS) before you make any decisions about your superannuation. To obtain a copy of the Fund’s PDS, please contact a Plum Member Services Consultant on 1300 55 7586.Neither the Administrator, the Trustee, nor any other company in the National Australia Group of companies accepts liability whatsoever for any decision that is made on the basis of or in reliance of the information contained in this material. Please note that the information in this material is current as at {Insert date}. Any changes in the law or policy subsequent to this date have not been incorporated.
© 2011 Plum Financial Services Limited ABN 35 081 812 731 AFSL 243356 (Administrator).