A Binding Death Benefit Nomination contains the person or people who are to receive your superannuation benefits on your passing. The reference to “Binding” means that your trustee is bound to follow your wishes in your nomination providing it is valid.
Examples of criteria which must be satisfied for a nomination to the valid:
- it is signed by you;
- it was signed in the presence of two independent witnesses (to be independent they would not benefit from your superannuation proceeds); and
- it complies with the terms of your Trust Deed (where self-managed superannuation) and/or relevant superannuation legislation.
If there is no Binding Death Benefit Nomination in place on your death, the trustee of your superannuation fund has discretion to determine who will receive your superannuation benefits.
Our team at The Small Business Lawyer can assist you with drafting and execution of your Binding Death Benefit Nomination.