Binding Death Benefit Nominations – Notice and Conduct
A binding death benefit nomination (BDBN) is a direction from a member of a superannuation fund to the trustee of the superannuation fund on how that person’s superannuation entitlements are to be paid or transferred on their death. In the absence of a BDBN, the trustee is not compelled to distribute the superannuation proceeds in accordance with the member’s wishes.
Superannuation nominations and death
There has recently been publicity in the media; about the long delays by superannuation funds in processing applications made by bereaved family members for payment of deceased person’s superannuation entitlements.
Some reports have referenced people waiting 15 months for the fund to make the payment, causing emotional and financial distress for the claimants.