How to establish a binding death benefit nomination

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ width=”1/1″ tablet_text_alignment=”default” phone_text_alignment=”default”][vc_column_text]Creating a binding death benefit nomination

A binding death benefit nomination (BDBN) is a written notice provided to the trustee of a super fund which explicitly nominates a beneficiary for the super benefit in the case of the fund owners death.

Individuals can choose to nominate either a dependent or a legal personal representative to receive the contents of their super fund. Dependents can be a spouse, child, or any other person(s) who could be seen as financially dependent on you at the time of death. Nominating a legal personal representative means the super benefit will become part of the individual’s assets and will be distributed as dictated by their will.

A BDBN is valid if:

• The member has named dependent(s) or a legal personal representative as the beneficiary.
• Requirements in the Superannuation Industry Supervision Act 1993 (Cth) have been met.
• The superannuation fund acknowledges acceptance of the BDBN.
• The allocation of benefits has been clearly set out, with everything from the fund being allocated.
• The nomination has been signed and dated by the owner of the fund (not a legal representative) and two witnesses who are over 18 and not receiving benefits.

Some funds also offer the choice between a lapsing and non-lapsing binding nomination. Lapsing nominations must be renewed or reviewed after a certain period, in most cases three years. Non-lapsing funds, however, are permanent unless changed or reviewed by the owner.

Members should note that not all super funds offer the option for BDBN and individuals can only make a nomination if their fund allows them to. Other funds may not offer a choice between lapsing and non-lapsing nominations.

Contact us to learn more about eligibility and whether a BDBN is a good move for your future planning.[/vc_column_text][/vc_column][/vc_row]