Page 10 - FWP Wealth Adviser Issue 109

ISSUE 109
APRIL 2025
Ask a Question 2:

Can I nominate my siblings to receive my superannuation
Q&A: Question when I die?
You can only nominate your siblings in a binding death
benefit nomination if they meet the definition of a depen-
dent under superannuation law at the time of your death.
This means they would need to be financially dependent on
you, in an interdependent relationship with you, or both.
Question 1: Simply being related—such as being a brother or sister—is
My friend mentioned they’re using the Home Equity Access not enough on its own to make them eligible.
Scheme (HEAS) to help fund their retirement. What is it, If your sibling doesn’t meet one of these criteria, you
and how much can I get from it? can still nominate your legal personal representative (your
The Home Equity Access Scheme (HEAS) is a government estate) and direct your super to your sibling through your
initiative that allows eligible older Australians to supple- will. It’s important to ensure your nomination is valid under
ment their retirement income by unlocking equity in their your fund’s rules, as an invalid nomination could result in
home or other real estate. It provides a voluntary, non-tax- the trustee deciding who receives your benefit.
able loan through Services Australia, with the loan amount
secured against the person’s property. You don’t need to be Question 3:
receiving the Age Pension to apply, but you must be of Age If I get a new job within the same industry, can I increase
Pension age and meet residency requirements. The funds my income protection without going through underwriting?
can be received as regular fortnightly payments, a lump Some income protection policies include a guaranteed
sum, or a combination of both, and interest is charged on future insurability or benefit indexation feature, which may
the loan and compounds over time. allow you to increase your cover without full medical under-
The maximum you can receive under the scheme is writing—particularly if your income increases. However, this
currently up to 150% of the maximum Age Pension rate, typically depends on the terms of your policy, how recently
including supplements. The loan is typically repaid when the cover was set up, and whether you meet specific criteria,
the property is sold or can be repaid earlier if preferred. such as remaining in the same occupation or industry.
Importantly, a No Negative Equity Guarantee applies, It’s important to note that conditions, limits, and time-
meaning you won’t owe more than the value of the property frames usually apply. Some policies may only allow adjust-
used to secure the loan. As of April 2025, the interest rate is ments on policy anniversaries or require financial evidence
3.95% per annum, though this may change over time. You of your new income level. If you’re thinking about changing
should speak to your financial adviser to help you navigate jobs or have already done so, you should speak to your
the appropriateness and suitability of using this scheme. financial adviser to understand the options you may have.

Future Wealth Planners

Level 1, 176 Main Street
Osborne Park WA 6017

P.O. Box 16
Osborne Park WA 6917

P: 08 9207 3844
W: www.fwplanners.com.au
E: clientservices@fwplanners.com.au

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