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What is a Binding Death Benefit Nomination?
Technical Guides • What is a Binding Death Benefit Nomination?
What is a Binding Death Benefit Nomination?
Understanding Your Superannuation Estate Planning Options
Take Control of What Happens to Your Superannuation
Your superannuation doesn’t automatically form part of your estate when you pass away, and that’s where a binding death benefit nomination becomes essential.
Our 2025 guide explains how this legal document works, who can receive your super, and how to ensure your wishes are carried out exactly as intended.
Whether you’re updating your estate plan or managing multiple beneficiaries, this guide helps you make informed, confident decisions about one of your most valuable assets.
What You’ll Learn
- How a binding death benefit nomination works
Understand how it gives you control over who receives your superannuation and why it differs from a traditional will. - Who qualifies as a dependant
Learn who you can nominate - including spouses, children, dependants, and your legal personal representative. - Advantages of making a binding nomination
Discover how it provides certainty, avoids disputes, and ensures faster access to funds for loved ones. - How to create a valid binding nomination
Step-by-step guidance on preparing, signing, witnessing, and submitting a valid nomination. - When a non-binding nomination may be better
Explore scenarios where flexibility is more appropriate, such as where family or financial circumstances may change. - When binding nominations may not apply
Understand when your nomination may lapse or become invalid, and how to renew or amend it correctly.
Who This Guide Is For
This guide is designed for:
- Superannuation members who want to ensure their benefits go to the right people.
- Individuals updating their estate plans or managing family structures with multiple dependants.
- Executors and trustees responsible for overseeing superannuation distributions.
- Anyone seeking clarity on how to protect their super from unnecessary disputes or delays.
If you want to be confident your superannuation benefits are distributed according to your wishes, this guide will help you understand your options and obligations.
FAQs
It’s a legally binding instruction to your superannuation fund specifying who should receive your super balance when you pass away.
Only dependants (such as a spouse, children, or financial dependants) and your legal personal representative (LPR) can be nominated under superannuation law.
Most binding nominations are valid for three years, unless your fund allows for a non-lapsing nomination. You can amend or renew it at any time.
A binding nomination must be followed by the fund trustee, while a non-binding nomination allows the trustee to use discretion based on changing circumstances.
If you have a single dependant or straightforward estate, a binding nomination may not be necessary. However, in blended families or complex arrangements, it’s often vital.
If the nominated beneficiary no longer qualifies as a dependant or LPR at your death, the nomination becomes invalid. You’ll need to update it to remain valid.
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