Binding Death Nominations – What you need to know
A Binding Death Nominations (BDN) is a legal document that allows a superannuation fund member to nominate who they want to receive their superannuation benefit in the event of their death.
BDNs are different from non-binding death nominations (NBDN), which are more like recommendations to the trustees of the superannuation fund rather than a legally binding instruction. In contrast, a BDN is a legally binding document, meaning that the trustee must pay the superannuation benefits to the nominated beneficiaries in accordance with the member’s wishes.
If neither a BDN nor NBDN has been completed then the trustees of the super fund will decide who receives the benefit.
It is important to note that not all superannuation funds allow for BDNs, and the rules around BDNs can vary between funds. Additionally, BDNs need to be updated regularly to reflect any changes in personal circumstances or wishes, such as the birth of a child or the breakdown of a relationship.
It is recommended that individuals seek professional legal and financial advice before making a BDN to ensure that their wishes are properly documented and that their loved ones are provided for in the event of their death.
Our Wills & Estates Lawyers can assist with all aspects of estate planning. We can be contacted on 07 3808 7777 or firstname.lastname@example.org.