In recent years there have been increasing incidents of family members successfully challenging Binding Death Benefit Nominations (BDBN) via the Courts. In other words, the superannuation benefits have been distributed in a way other than the way the deceased intended.
When you make a BDBN, it is critical that it is valid. To ensure the validity of your BDBN, it is essential to get advice from an estate planning specialist who will check the nomination complies with not only the governing rules as set out in the Fund Deed, but also the historical documents such as previous Deeds and other related documents.
In addition to ensuring your BDBN is valid, with the constant changes in superannuation rules and caps, it is important to regularly review your BDBN and/or reversionary pension/s to ensure they remain appropriate and tax effective. Bequeathing assets in a tax in-efficient way is likely to cause more headaches than benefits for the recipients.
If you have any queries in relation to BDBN’s or simply want to understand how you have elected for your superannuation benefits to be paid on your death, please contact us for further information and guidance.
If you would like more information in relation to ‘What is a BDBN?’ please read our previous article.
General Advice Warning – The information in this article is educational and general in nature. It does not take into consideration your personal financial or taxation information, goals and objectives. Please ensure you seek appropriate financial and taxation advice.
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