Until 1999, Superannuation Fund trustees were not bound by any request by a member to distribute their entitlement in a particular manner. However as from 1999 it is possible for a superannuation funded member to compel the Superannuation Fund trustee to distribute the member's entitlement upon death in a particular way. The form which allows a member to do this is called a Binding Death Nomination.
Not all Superannuation Fund's allow for Binding Death Nominations and they are not for everybody. They need to be executed in the same fashion as a Will but unlike a Will, they expire after three years. Binding Death Nominations fetter the discretion of the trustee and for some people this is important. For others it is incidental and more trouble than it is worth. Binding Death Nominations are however an important consideration in any estate plan. |
