What is binding death benefit nomination form?

A binding death benefit nomination is a legal document which binds LGIAsuper to pay your benefit to your nominated beneficiary or beneficiaries provided it is still a valid nomination at the time of your death.

Does a binding death nomination override a will?

A valid binding death benefit nomination will override any preferred beneficiary nomination that you’ve previously made. Some funds will not accept a binding death benefit nomination made under a power of attorney.

How do I make a beneficiary binding?

How to make a valid binding death benefit nomination

  1. be made to the trustee in writing and clearly set out the proportion of the benefit to be paid to each person nominated.
  2. be signed by the member in the presence of two witnesses over 18 years of age and who are not nominated as beneficiaries.

Can I make a binding nomination to my estate?

As binding nominations require a formal nomination, much like a Will, and must be renewed every three years, or whenever your circumstances change, they may not be suitable for everyone. If certainty already exists, for example, where there is a sole dependant, a binding death nomination may be of little value.

Should I have a binding death benefit nomination?

In summary, as payment of superannuation entitlements after your death can result in significant distributions to your beneficiaries, you should consider a Binding Nomination when preparing your overall estate plan to ensure your wishes are carried out.

What is the difference between binding and non-binding death benefit nomination?

So long as the binding death benefit nomination is valid, the Trustee is bound to follow it. A non-binding death benefit nomination is a written request made by you that suggests to the Trustee the beneficiaries that may receive your benefit in the event of your death.

How long does a binding death benefit nomination last?

three years
Binding death benefit nomination: This is a written direction from a member to their superannuation trustee setting out how they wish some or all of their superannuation death benefits to be distributed. The nomination is generally valid for a maximum of three years and lapses if it is not renewed.

What is binding nomination of beneficiaries?

As the name suggests, a Binding Nomination is binding on the trustee. This means that a trustee is unable to use their discretion when paying death benefits to beneficiaries of a deceased member; the trustee must pay the member’s balance strictly as nominated on the Binding Nomination.

What is the difference between binding and non-binding beneficiaries?

Binding death beneficiary nominations (BDBN) A binding nomination is valid for three years, unless it is renewed, changed or cancelled earlier – if you do not renew it before the end of the three-year period from last signing, it becomes a non-binding nomination.

What is the difference between a binding nomination and a non-binding nomination?

A binding nomination is valid for three years, unless it is renewed, changed or cancelled earlier – if you do not renew it before the end of the three-year period from last signing, it becomes a non-binding nomination.

How long does a binding death nomination last?

What happens if you dont have a binding death nomination?

If you don’t make a written death benefit nomination, the trustee of your super fund will decide who receives your death benefit. It may pay the death benefit to your estate, or it may use its discretion to decide which of your eligible beneficiaries receives the death benefit.