Binding Nomination

By Forrest Private Wealth

Binding Nomination

Your super will grow to become one of your most valuable assets, so it’s important to understand where it’ll go if anything happens to you unexpectedly. Have you completed your binding nomination for your superfund?

We recommend that your Superannuation Binding Nomination be kept up to date annually. A lot of people do not make a binding nomination leaving the distribution of any benefits from superannuation, or any insurances held in the fund to chance in the event of their passing.

What is a Superannuation Binding Nomination?

A binding death benefit nomination is a legally binding nomination that allows you to advise the trustee of your superannuation fund who, in the event of your death is to receive your superannuation benefit. In order for a nomination to be binding, it must be valid.

A binding death benefit nomination is a legal instrument that “binds” the Trustee to pay your death benefit to your nominated beneficiaries. If your binding death benefit nomination is valid, the Trustee must pay your death benefit to the beneficiaries you’ve nominated (as long as they are acceptable beneficiaries) in the proportions set out in your nomination.

What is the difference between a Binding and Non-Binding Nomination?

A superannuation nomination can be Binding or Non-Binding. The difference between Binding and Non-Binding beneficiary nominations is that one is binding on the trustee and one is not. While many superannuation funds will offer both Binding and Non-Binding beneficiary nominations to members, some superannuation funds only provide a member with the ability to make Non-Binding nominations.

A Non-Binding Nomination is more of a ‘request’. It tells the trustee how a member would like their benefits distributed, but leaves ultimate discretion with the trustee, taking into account the members relationships at the time of death. This will generally take into account your Will.


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