This is the second article in our series detailing steps you can take to reduce (or perhaps entirely prevent) a challenge being made to your estate.

One crucial step, to take as part of your estate plan, is to properly deal with your superannuation.

There is an important distinction between “estate” assets and “non-estate” assets.

Most people are surprised to learn their superannuation is not automatically caught or controlled by their Will.

A Binding Nomination dealing with your superannuation can be a very useful estate planning tool to reduce the impact of any anticipated challenge to your estate.

A Binding Nomination, naming beneficiaries who are to directly receive your superannuation, will “override” any clause in your Will.

By putting in place a Binding Nomination you can ensure your superannuation remains a “non-estate” asset and effectively quarantine it from any challenge that might ultimately be made against your estate.

There are strict rules to follow to ensure any Binding Nomination is valid.