Is your SMSF binding death benefit nomination bulletproof?

When it comes to the requirements for binding death benefit nominations (BDBNs) in the context of self managed superannuation funds (SMSFs), the provisions of the trust deed are paramount. Many advisors don't realise that the provisions of the Superannuation Industry (Supervision) Act 1993 have no bearing on the process for making binding death benefit nominations and that all of the answers lie in the trust deed itself.

Common errors or issues that can affect the validity of BDBNs are:

1. The process specified in the trust deed is not correctly followed, for example:
2. • An approved form of BDBN (often annexed to a Schedule in the trust deed) is not adopted
   • The Trustee's approval or acknowledgement is required but not obtained or no evidence of such can be shown