Binding Death Benefit Nominations – more than just filling in a form

Estate Planning is a crucial component to the management of your superannuation assets. In light of this, attention to Binding Death Benefit Nominations (BDBNs) should surpass ‘just filling in a form’.

Like a Will for your assets outside of super, a BDBN is a formal declaration by a member indicating in, accordance with the fund’s rules, to the trustee, who they would like their member benefit to be paid to upon death.

It is therefore imperative that the death benefit nominations be considered in reference with the members Will and overall estate planning wishes to ensure that the BDBN and the Will ‘talk’ to each other.

Without a proper BDBN on file, it is then left to the trustees’ discretion where the member’s death benefit is paid.

The Superfund Partners approach to a holistic estate plan that includes an SMSF has the following components:

  1. Personal Will
  2. Enduring Powers of Attorney (EPoA)
  3. High quality up to date and strategically drafted trust deed
  4. Corporate trustee for your SMSF
  5. Pensions are auto-reversionary (for pension members)
  6. Non-lapsing binding death benefit nominations (BDBNs) (for all members)
We can work with you and your family solicitor to put together a comprehensive SMSF estate plan that ensures you benefits go to your intended beneficiary in the smoothest possible fashion.  We also have available a qualified and experienced estate planning lawyer with extensive SMSF knowledge who we can refer you to if you prefer.
The commentary above is provided in relation to the following article that was published by SMSF Magazine on the 16th of June:

If you have any questions, or would like to speak to us about your SMSF estate plan, please contact us.

Director at Superfund Partners. I love working in the SMSF space. Self-managed super funds are more than just a savings vehicle - they enable people to truly take control of their financial situation which is key to achieving happiness. Leading the Superfund Partners team is a privilege - they are a great crew and they always put others first.