Binding or Non-Binding
Some superannuation funds do not permit a BDBN but allow a Non-Binding Death Benefit Nominations (N-BDBN). The N-BDBN allows you to nominate your beneficiaries however the trustee of your fund is not bound to follow those wishes (and therefore may exercise their discretion as to who receives your superannuation benefits).
You can only nominate people considered as “dependants” and these include spouse, children, persons who have an interdependent relationship (financial or physical) or your Legal Personal Representative (executor).
The BDBN can be made indefinitely (non-lapsing) or the superannuation fund may require a 3 yearly update. We strongly suggest that you review your death benefit nomination on an annual basis. When making any decisions in a super fund, reference must be made to the fund’s trust deed to ensure the action is valid.
Please contact our office if you require more information on Binding Death Benefit Nominations.