Make a superannuation death benefit nomination

We will help you ensure your superannuation death benefits are paid to the right people in the way you intend.

Your superannuation is likely one of your largest assets, and unlike most of what you own, it does not automatically pass under your will. Without a valid, current binding death benefit nomination, the trustee of your fund has discretion over who receives it. In an SMSF context, that means the surviving trustee decides. The consequences of getting this wrong range from a death benefit going to the wrong person to a full-blown family dispute that consumes the asset in legal fees. We put the right directions in place so your super goes where you intend.

What are superannuation death benefits and why do they matter?

When you die, your superannuation fund holds your account balance and any life insurance, and the trustee must decide how to pay these death benefits. Without a valid binding death benefit nomination, the trustee exercises discretion in distributing the death benefit, which may not align with your wishes or your estate plan. A binding death benefit nomination directs the trustee to pay your death benefit to specific eligible beneficiaries, giving you control over this significant asset.

What is a binding death benefit nomination?

A binding death benefit nomination (BDBN) is a legal direction from a fund member to the trustee specifying who should receive the death benefit, and in what proportions. When a valid BDBN is in place, the trustee must pay the death benefit in accordance with the nomination rather than exercising their own discretion. Nominations must be made to eligible beneficiaries and must be renewed every three years unless the fund deed provides for a non-lapsing nomination.

Who can I nominate as a beneficiary of my superannuation death benefit?

You can only nominate eligible dependants and your legal personal representative under superannuation law. Eligible dependants include your spouse, children of any age, financial dependants, and interdependants. You cannot nominate other individuals such as siblings or friends directly, though they may benefit indirectly if the death benefit is paid to your estate.

Does my superannuation go to my estate when I die?

Not automatically. Superannuation is held in trust and does not automatically form part of your estate. If you nominate your legal personal representative, the death benefit is paid to your estate and distributed under your will. If you nominate individual dependants, the benefit is paid directly to them. We advise on which approach best suits your estate planning objectives.

What is a reversionary pension?

A reversionary pension continues to be paid to a nominated reversionary beneficiary (usually a spouse) after the original member dies, without the benefit reverting to the fund. This can provide continuity of income for a surviving spouse while also offering some tax advantages. We advise on whether a reversionary pension is appropriate for your situation.

Your superannuation death benefits are directed by a legally effective nomination that reflects your wishes.

Your surviving family members are protected from a trustee exercising discretion against your intentions.

Your superannuation is integrated with your broader estate plan.

Do you know where your superannuation will go when you die?

Without a valid binding death benefit nomination, someone else will decide. Let us help you put the right directions in place.

Without a valid nomination, someone else decides where your super goes.

You want to ensure your superannuation death benefits are paid to the right people in the right proportions when you die, but you are not certain whether your current nomination is valid, whether it will lapse before you die, or whether your circumstances have changed in a way that makes a new nomination necessary.

We will review your current superannuation beneficiary nominations.
We will advise on the most appropriate death benefit strategy for your circumstances.
We will prepare legally effective binding death benefit nominations.
We will advise on reversionary pension nominations where appropriate.
We will coordinate your superannuation death benefit strategy with your broader estate plan.

Making sure your superannuation goes where you intend.

You have a meaningful superannuation balance and you have given some thought to who should receive it when you die. You may have signed a binding death benefit nomination at some point, but you are not sure whether it is still current. Nominations lapse every three years under most fund rules unless specifically drafted as non-lapsing. Your family circumstances may have changed since the last nomination. And you know that superannuation does not automatically flow to your estate, so your will alone does not control where it goes.

What's included in your superannuation death benefits advice service

Advice on binding death benefit nominations for SMSF and APRA-regulated funds.
Review and preparation of BDBN documentation.
Advice on reversionary pension nominations.
Superannuation estate planning advice.
Coordination with your estate planning lawyer or financial adviser as required.
Advice on tax treatment of death benefit payments.

What happens when no valid nomination is in place?

The consequences of a lapsed or invalid BDBN in an SMSF play out in a predictable pattern. The member dies. The surviving trustee, who may be a spouse, an adult child, or a co-trustee with their own financial interests, is now the person who decides which eligible dependants receive the death benefit and in what proportions. Even where the surviving trustee acts with complete integrity, their decision may not reflect what the deceased member would have wanted. When the surviving trustee has a personal interest in the outcome (because they are one of several potential beneficiaries) the potential for conflict is obvious. These disputes end up in tribunals and courts, they cost enormous sums in legal fees, and they damage family relationships in ways that never fully heal.

Here is how we protect your superannuation wishes.

We assess your superannuation structure, your family circumstances, and your estate plan as a whole to advise on the nomination approach that best achieves your intentions. We prepare nominations that are legally effective under the fund’s deed, drafted with the precision required to bind the trustee’s discretion, and coordinate with your estate planning documents to ensure your superannuation and non-superannuation assets are distributed consistently. Where a reversionary pension is appropriate for a surviving spouse, we advise on that structure as well, and we ensure you understand when and how to renew lapsing nominations.

Our superannuation death benefits process

Three steps to superannuation death benefits that work as intended.

Assess your situation

We review your current superannuation structure, beneficiary nominations, and estate plan to identify any gaps or inconsistencies that could create problems when you die.

Advise and document

We advise on the most appropriate death benefit strategy and prepare binding death benefit nominations that are legally effective and consistent with your broader estate plan.

Implement and maintain

We coordinate execution of the nominations with the relevant fund trustee and advise on renewal requirements so your directions remain current and effective.

Experienced superannuation lawyers ready to guide you.

We understand that thinking about what happens to your super when you die is not something most people want to spend time on, and that the complexity of the rules makes it easy to put off. We have seen the consequences when it is left too late, and we take the matter seriously. Our lawyers advise on superannuation death benefit planning as an integral part of planning for your future, we know how to structure nominations that hold up when they are most needed.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Ready to secure your superannuation death benefits?

Book a call today and we will review your current nominations, advise on the right strategy for your situation, and ensure your superannuation goes where you intend.

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