Binding Death Benefit Nomination

A Binding Death Benefit Nomination (BDBN) is a form you lodge with your super fund that legally compels the trustee to pay your superannuation death benefit to the people you name. Unlike a non-binding nomination, a valid BDBN takes the decision out of the trustee's hands. To be valid it must usually nominate a death benefit dependant or your legal personal representative, be properly witnessed, and (for most retail and industry funds) be renewed every three years.

A BDBN is the most reliable way to control where your super goes, and pairing it with your Will gives a complete plan. Example: Tom lodged a non-lapsing BDBN directing 100% of his super to his wife, so when he died the trustee paid her within weeks without disputes. SMSF deeds can allow non-lapsing BDBNs that never expire, but they must comply with the fund's trust deed — many are invalidated by simple witnessing errors.