HQB’s Weekly SMSF News – Week 15
Binding Death Benefit Nominations (BDBNs) – what is a BDBN and do I need one?
- A BDBN is a legal document that can be established for a member while they are alive
- It legally binds the trustee of the SMSF to direct the deceased member’s benefits to a dependant or their legal personal representative (executor)
- Superannuation benefits do not automatically flow to the deceased person’s estate
- A BDBN is a tool that should be considered as part of a person’s Will and estate planning. The document should be properly and carefully prepared with the advice of a solicitor
- Without a BDBN, the trustee decides how the benefits are distributed, which may not be in accordance with a person’s wishes
If you would like to discuss further how a BDBN works, please do not hesitate to contact our office.
– Brad Sheaves
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.