Binding and non-binding beneficiaries: understanding the differences
So, what stops some people from nominating where their super goes?
It often boils down to one (big) decision: to make a binding or non-binding nomination.
What’s the difference between a binding and non-binding nomination?
A binding nomination is exactly as it sounds–it’s legally binding. The Trustee must follow it, as long as it’s valid.
A non-binding nomination, on the other hand, isn’t legally binding. However, it provides the Trustee with guidance on your wishes for who should receive any benefits.
If non-binding nominations aren’t legally binding, why make one?
There are a couple of common reasons that people choose a non-binding nomination.
- You have more options when it comes to who you can nominate
The people you can make a non-binding nomination to aren’t limited to a dependant or a legal representative as they are with a binding nomination. For example, if you don’t have dependants, such as children or a spouse, you might choose to make a non-binding nomination to your parents, siblings, other relatives, or even a friend. - It’s simpler to do
A non-binding nomination doesn’t need to be witnessed and can be done easily, either in Member Online or by filling out a form and returning it by email.
Key differences between binding and non-binding beneficiary nominations
| Binding | Non-binding |
| Legally binding | Not legally binding, but your wishes are documented. |
| Your nomination must be signed by two witnesses (who must be over 18 years) and returned to us by post. | Doesn’t need to be witnessed and can be submitted online via Member Online or by completing a form and returning it to us by email. |
| There are two types of binding nominations you can make: lapsing and non-lapsing. A lapsing binding nomination expires and needs to be renewed every 3 years. A non-lapsing binding nomination doesn’t expire unless you cancel or update your nomination. There are circumstances where both lapsing and non-lapsing binding nominations may become invalid, such as if you get married or divorced. |
Never expires, so doesn’t need to be renewed. And you can update your nominations quickly and simply. |
| You can only nominate a dependant or a legal representative (usually the executor or administrator of your estate). Options include: - A legal personal representative - Your spouse or partner - Your children, including natural, step or adopted. - Any person who’s financially dependent on you. - Any person you have an interdependent relationship with. Important: If you nominate an ineligible beneficiary, your nomination will be considered invalid. If your binding nomination isn’t valid when you pass away, we’ll work out who to pay your benefits to. |
You have more choices about who you can nominate. |
What if you just include your super in your will?
Super isn’t automatically included in your estate, so if you want to include your super in your will, you would need to make a binding nomination to your legal representative so they can distribute your super as instructed in your will.
Still unsure?
At the end of the day, the type of nomination you make comes down to your individual circumstances.
For a more in-depth look at beneficiaries, who you can nominate and how to nominate them, you can read our Nominating your beneficiaries fact sheet.
And if you’d like to organise a time to chat with a super expert, you can request a call back.
This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you.
Information correct as at 18 February 2025.
CareSuper app
Download the CareSuper app and manage your account on the go!
