Estate Planning – Binding Death Nomination

When did you last update your binding death benefit nomination (BDBN)?

BDBNs are a tool used in estate planning designed to give certainty to a member by directing the trustee of a superannuation fund as to the payment of a member’s death benefit.

BDBNs for most retail and industry funds cease to have effect after three years.

But what about SMSF? The High Court of Australia is considering this now and is set to decide on SMSF non-lapsing binding nominations.

If the recent decision of the Western Australian Court of Appeal in Hill v Zuda Pty Ltd is not upheld, this will likely be cause for members of self-managed superannuation funds to review their existing nominations and ensure they are compliant, and potentially require a reconsideration of estate planning strategies.

For those members who have lost capacity, there may be additional complications.