Using a binding death benefit nomination (BDBN) can provide members with the peace of mind knowing that their superannuation will be protected and properly distributed in the event of their death.

A binding death benefit nomination is a legally binding written document which outlines who you wish to receive your superannuation benefit if you were to pass away. For a BDBN to be legally binding, it must be ‘valid.’

For a BDBN to be valid, the person or people you nominate to receive your superannuation benefits must be classified as dependents. Under Australia’s superannuation laws, dependents include spouses; children of any age; individuals who are financially dependent on the deceased; a legal representative or individuals who are in an interdependency relationship with the deceased.

There are two types of BDBNs; lapsing and non-lapsing. A ‘lapsing’ BDBN remains in effect for three years from the date it is first signed, last amended or confirmed. A ‘non-lapsing’ BDBN will not expire unless the trustee amends or revokes it. Members can amend or revoke their BDBN at any time.

To make a valid BDBN, the document must include certain information and elements, such as the proportion of the benefit to be paid to each beneficiary nominated; the signature of the member (the member must sign the form in the presence of two witnesses who are over the age of 18) and witness declarations.