A High Court decision in Hill v Zuda Pty Ltd as Trustee for The Holly Superannuation Fund given on 15 June 2022 clarified the position in relation to Binding Death Benefit Nominations and self-managed superannuation funds. In the decision, the Court decided that Regulation 6.17A of the Superannuation Industry (Supervision) Regulations does not apply to Binding Death Benefit Nominations in self-managed superannuation funds. As a result, the decision provides that the rules for making Binding Death Benefit Nominations are imposed by the Trust Deed for the superannuation fund and not the Regulation.
Therefore, unless the Trust Deed for the fund provides for it, Binding Death Benefit Nominations shall not lapse after three years. Likewise, there need not be two independent witnesses unless the Trust Deed provides for it. It follows that it is very important to read and follow the Trust Deed when making a Binding Death Benefit Nomination in respect of self-managed superannuation funds. For those people with a self-managed superannuation fund, now is a good time to review the requirements for Binding Death Benefit Nominations under the terms of the Deed.
It is important to get it right. Mullane & Lindsay can provide assistance with the interpretation of the Trust Deed for the fund and the drafting of Binding Death Benefit Nomination forms.
To book an appointment please contact Jann Murray on 4928 7300 or by email to: jann.murray@mullanelindsay.com.au.
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