So binding death benefit nominations in self-managed superannuation funds are safe – or are they?21 June 2022 Authored by: Scott Hay-Bartlem | Topics: Professional advisers, Superannuation
The High Court has decided that BDBNs in SMSFs do not need to comply with the technical requirements in the superannuation regulations, but is that the end of it?
There are still many risks with BDBNs, and they can still be challenged and go wrong in many ways, including where:
- the BDBNs:
- do not work in with the estate planning
- are inconsistent with reversionary nominations on pensions
- do not comply with trust deed provisions
- do not contemplate different alternatives and fall backs properly
- are not clearly drafted
- the SMSF trust deed requires the BDBN to comply with the superannuation regulations
- there are alternatives that would work better.
Now is a good time to review BDBNs to ensure they validly deal with the superannuation death benefits in SMSFs.
Join our webinar on 23 June 2022 where we explore this further, or contact a member of our team.