When a person dies with superannuation, any remaining amount is paid by the Trustee of the superannuation fund at its discretion unless the member of the fund has filed a binding death benefit nomination. Superannuation does not automatically pass under the terms of the Will unless the binding death benefit nomination provides that it is paid to the legal personal representative (of the estate) or the Trustee determines that it be paid to the estate. A binding death benefit nomination correctly executed and in accordance with the legislation and the superannuation trust deed binds the Trustee of the superannuation fund to pay the remaining superannuation in accordance with the binding death benefit nomination. It is therefore important to have a binding death benefit nomination in respect of superannuation where there is a possibility that there will be competing claims for the superannuation. There are also taxation consequences depending on who receives the superannuation and therefore it is wise to obtain accounting advice before completing a binding death benefit nomination.
The terms of the BDBN may have a bearing on how the Will is drafted.
Liability limited by a scheme approved under Professional Standards Legislation
