In this case a binding death benefit nomination was held to be invalid because it had not been given to the trustee, that is, not given to all the trustees of the fund. The court found that only one trustee had been given the nomination.
BDBN
Last minute withdrawals before time is called
Is it possible to make a last minute withdrawal before you die and the payment, if made after you have died, still be treated as being tax free? Well Yes – according to a recent private binding ruling from the Commissioner.
Must SMSF BDBNs comply with the 2 witness and 3-year validity rules?
There has been a continuing legal controversy as to whether Binding Death Benefit Nominations (BDBNs) for SMSFs must, in order to be valid, comply with both the 2 independent witness rule and 3-year validity period rules (2 witness & 3-year rules).
SMSF death benefits – the case for flexibility
We often want certainty. In a world where there is increasing conflict between family members after a parent dies, and a greater propensity for children to challenge a deceased person’s estate, anything that promotes greater certainty with regard to estate planning is usually seen as a good thing.
Uncertain future of attorneys making BDBNs for their principals
While the facts of a recent NSW Supreme Court case, G v G (No.2) [2020] NSWSC 818, relate to a financial manager appointed under the NSW Trustee and Guardian Act 2009 (NSW) and retail super funds, the decision that the fiduciary office has no authority to make a binding death benefit nomination seems to raise an interesting question quite relevant for SMSFs.
Asset Rich Cash Poor: Meeting cash obligations with all eggs in one basket
What to do when the fund owns a property and one of the members dies. Can the fund delay selling the property to pay the death benefit?
Case study: tailoring a BDBN for estate equalisation
A conditional BDBN is put in place so each child may receive an equal share of their parent’s overall wealth.
How can BDBNs be tailored to address blended family situations?
What if you want to look after your current spouse but on their death or re-marriage ensure that your super death benefit goes to your own children of a previous relationship?