Self-managed super funds and binding death benefit nominations
We have released a draft determination entitled SMSFD 2008/D1Self Managed Superannuation Funds: is there any restriction in the Superannuation Industry (Supervision) Act 1993 on a fund trustee accepting from a member a binding nomination of the recipients of any benefits payable in the event of the member's death?
Specific super law requirements regarding binding death benefit nominations do not apply to SMSFs.
The governing rules of an SMSF can allow members to make binding death benefit nominations that are binding on the trustee, even if the nominations do not meet specific super laws.
However, a member can not nominate a person who under super law is not able to receive the death benefits of that member. The member must choose a person allowed under the super laws. Otherwise the death benefit nomination will not be binding.
Generally, people that the member can nominate are:
the member’s legal personal representative, and/or
one or more of the member’s dependants.
How you can comment on the draft determination
To comment on the draft determination, provide your comments to us by Friday 10 October 2008 by:
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