Binding death benefit nomination
For a binding death benefit nomination to be binding:-
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It must be made in favour of a tax dependent.
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It must be done using the approved form for the fund.
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It must be witnessed.
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It must be made whilst having mental capacity (so an elderly person may be wise to have their GP assess their cognitive powers).
A binding death benefit nomination only holds for 3 years. After 3 years, it loses its validity.
Whilst a binding death benefit nomination must be followed by the super fund trustees and therefore creates certainty, it may not be the best option for you.
You should not execute a binding death benefit nomination until you have completed a full estate planning review and done so with the input of your accountant, financial planner and estate planning lawyer.
At MRS, we will spend today planning for your success.