As the super death benefit is not dealt with by Will and does not form part of the client’s estate, it will not be subject to a challenge to the estate – although it may still be subject to the “notional estate” provisions under the Succession Act 2006 NSW as arguably a failure to nominate your estate as the beneficiary under a BDBN may constitute a “relevant property transaction” for the purposes of s 76(2) or (3) thereof;
Binding nominations in SMSFs are not subject to challenge in the Superannuation Complaints Tribunal (since the SCT has no jurisdiction over SMSFs under the Superannuation (Resolution of Complaints) Act 1993);
It has immediate effect – there is no need (as there is with a Will) to obtain probate and wait for administration of estate, which could take up to a year or more;
They can be used to create tax effective income streams within an asset protected environment to provide for intended beneficiaries.