Updating your beneficiary nominations

Why does updating your nominations matter right now?

It matters because your superannuation, insurance, and estate can end up with the wrong person, or with someone who has died, if your nominations are out of date. When a partner or close family member dies, they are often named across multiple documents: superannuation nominations, insurance policies, wills, Powers of Attorney, and Advance Care Directives. If those documents are not updated, they become either invalid or pointed at someone who is no longer living.

The risk is real. If you were to die tomorrow with outdated documents, the people you intend to benefit may not receive what you intended. Your super fund trustee would exercise discretion. Your estate might go to unintended parties. Your Power of Attorney would name someone who cannot act.

None of this needs to be done immediately, and you should not rush major decisions while grieving. But in the months following the death, working through this list is genuinely protective.

How do you update your superannuation death benefit nomination?

Contact your own super fund and review your binding death benefit nomination. If you had nominated the person who has died as your sole or primary beneficiary, that nomination needs to be updated. A nomination that names a deceased person is either lapsed or will direct the trustee to exercise discretion, neither of which may reflect your current wishes.

There are two types of nominations: binding and non-binding. A binding nomination directs the trustee to pay the benefit to the people you have named, provided they are eligible. A non-binding nomination is a guide, not an instruction, and the trustee may override it. Binding nominations expire every three years in most funds unless the fund offers non-lapsing binding nominations. Check which type you have and when it expires. ASIC's Moneysmart at moneysmart.gov.au has a plain-language guide to superannuation death benefits, including who can be nominated and what happens when a nomination lapses.

Eligible beneficiaries for a superannuation death benefit are limited by law to dependants (including a spouse or de facto partner, children, and financial dependants) or the legal personal representative of your estate. You cannot nominate a sibling or friend who is not financially dependent on you. An estate solicitor or your super fund can advise on who is eligible.

How do you update your insurance beneficiary nominations?

Review the beneficiary nominated on any life insurance, income protection, trauma, or total and permanent disability (TPD) policies you hold. If the person who died was the nominated beneficiary, update the nomination with the insurer directly.

This is an important distinction: insurance beneficiary nominations are held with the insurer, separately from your will. Updating your will does not automatically update your insurance nominations. They are completely independent documents and must each be updated separately.

Contact each insurer by phone or through your online account. Ask them to send you the current nomination they hold, and provide a new nomination once you have decided who you want to name. Ask the insurer to confirm in writing when the update has been made.

How do you update your will?

Review your own will in light of the changed circumstances. If your partner was named as the sole beneficiary, primary beneficiary, or executor, your will needs to be updated. A will that leaves everything to a person who has died will either fall to a substitution clause (if there is one) or result in a partial or complete intestacy, meaning the estate is distributed according to the law rather than your wishes.

Updating a will is relatively straightforward and not expensive. An estate solicitor can prepare a new will or a codicil (an amendment) for a fixed fee. Do not try to amend a will yourself by crossing out or writing over the existing text. Any amendment that is not properly witnessed and executed can invalidate part or all of the will.

As part of reviewing your will, think about who you want to name as executor. The executor is the person who will administer your estate. If your partner was previously named, choose someone else you trust: an adult child, a sibling, or a close friend. You can also name a professional executor such as a trustee company, which removes the burden from family members.

What do you do about your Enduring Power of Attorney?

An Enduring Power of Attorney (EPA) is a legal document that appoints someone to make financial and legal decisions on your behalf if you become unable to do so. If your partner was named as your attorney, that appointment ends with their death. The document is no longer operative in the way you intended.

Without a valid EPA, if something happens to you and you lose capacity, no one has authority to manage your finances or legal affairs without going to court to be appointed as a guardian or administrator. This is a difficult and costly process that can be avoided by having an up-to-date EPA in place.

An estate solicitor can prepare a new EPA as part of the same appointment where you update your will. Bring both up to date at the same time to save time and reduce cost.

How do you update your medical planning documents?

A medical Power of Attorney (also called an Enduring Power of Attorney for Personal/Health matters, depending on your state) appoints someone to make medical decisions on your behalf if you cannot. If your partner was named, you need to appoint someone else.

An Advance Care Directive (sometimes called an Advanced Health Directive) records your wishes about medical treatment in the event you cannot express them yourself. It is not a legal appointment of another person, but rather a statement of your own preferences. Review and update it to reflect your current situation and wishes.

These documents vary in name and form across states and territories. Your GP, hospital social worker, or estate solicitor can advise on the correct documents for your state and help you complete them.

When should you update these documents?

There is no legal deadline for updating these documents, but doing so within three to six months of the death is a reasonable goal. The estate administration process, which has its own deadlines and demands, should take priority in the first weeks. Come back to your own documents when you have capacity.

A single appointment with an estate solicitor can often address your will, EPA, and medical Power of Attorney in one session. Contact your super fund and insurers separately as those are administrative processes, not legal ones.

If you have adult children, consider discussing your updated documents with them so that the people who will be named or involved are aware of what is expected of them. These conversations, while sometimes uncomfortable, prevent confusion and conflict at the hardest possible time.