Your kids could pay unnecessary tax

Have you checked who will receive your super when you pass away?
A binding death benefit nomination tells your super fund who you want your super paid to, but it's important to understand that superannuation doesn't always follow the same rules as your will.
Who you nominate can also have significant tax implications.
For example, a spouse is generally able to receive your super tax-free, while young dependent children may also qualify for tax-free treatment.
However, once children become financially independent adults, they may have to pay tax on the taxable component of your super if they receive it directly.
That's why it's important to regularly review your binding death benefit nomination as your family circumstances change.
In some cases, it may be more appropriate to nominate your legal personal representative or explore strategies to reduce the taxable component of your super over time.
Estate planning and superannuation are closely connected, but they don't always work the same way.
Always seek personalised financial advice based on your circumstances.
General advice only.
Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).