Alright, let’s talk about everyone’s favourite topic - death!

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No? Ok Fair.

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But this one’s worth a read, because it’s about who actually gets your super when you’re gone.

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Here’s the deal: a Binding Death Benefit Nomination (or BDBN, because no one has time to say that every time) tells your super fund exactly who gets your super (and any insurance linked to it) when you die.

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If you don’t have one, the fund’s trustee gets to decide, which can open the door to delays, disputes, and some uncomfortable Christmas lunches.

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How It Works

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A valid BDBN binds the trustee to follow your wishes. You nominate:

- One or more dependants (spouse, children, or anyone financially dependent on you), or

- Your legal personal representative (your estate), which then distributes via your will.

If you get the form right, the trustee has to follow it. No debates, no drawn-out family meetings, no “But Dad said I could have the boat” situations.‍

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Do you actually need one?

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Short answer: yes.

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Long answer: still yes, especially if you:

- Have a blended family or ex-anything,

- Run a business or an SMSF,

- Like the idea of things being clear and drama-free when you’re not around to referee.

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But I’ve got a Will – why do I need a BDBN….DNBD…..whatever it is?

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Great question, I thought you would never ask.

Your will only covers assets you personally own. Your super, however, sits inside a trust which means you don’t technically own it yourself. So your will has no say over where your super money goes.

The only way to nominate who gets your super is by doing a BDBN. ‍

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Pro tips from your friendly neighbourhood accountant 🙋

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✅ Check your super fund to ensure you have one completed and its valid.‍

✅ Check the expiry date. Many of these nominations only last three years.

✅ If you have an SMSF complete a “non-lapsing” nomination. These ones don’t expire.

✅ Update it when life changes. Marriage, kids, divorce, new dog named Trevor - whatever.‍

✅ Get advice. There can be tax implications depending on who gets it. Ensure you nominate the right person.

Think of a Binding Death Benefit Nomination as a parting gift of peace and order. It’s one last “I’ve got this” from you to the people who matter most.

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– The team at PAL (making accounting slightly less boring since way back when)

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Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!

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