SEER Financial Group is committed to providing our clients with a personalised consulting service to assist clients with their SMSF succession plan, helping them achieve their objectives with as much certainty as possible and minimising future risk of legal challenge.
This can be achieved by making the first critical step of having prepared a Binding Death Benefit Nomination (‘BDBN’).
The scope of our engagement generally involves reviewing relevant background facts and source documents; by undertaking investigation and research to confirm issues requiring further consideration, providing initial oral feedback in a face to face meeting which can be followed by a succession planning review which ensures your superannuation interests form part of the overall succession plan.
Why should I have a BDBN?
An individual’s superannuation benefit (eg, the member’s account balance and/or insurance proceeds) is often their most significant asset (apart from their family home), yet many people are unaware that their superannuation benefit is not covered by their will.
Under most SMSF deeds, payment of a death benefit is left to the trustee’s discretion in the absence of some form of binding direction such as a binding death benefit nomination (BDBN) or an automatically reversionary pension. Accordingly, a BDBN can play a crucial role if a member would like certainty as to who gets their super proceeds on their death. It is also vital that BDBNs are prepared in conjunction with a member’s estate and succession plans, including their will.
Premium tailored service
Many of our clients rely on the free value-added template BDBN form provide with the product disclosure statement in our SMSF documentation (in new SMSFs and SMSF deed updates). This BDBN template can be used to achieve many simple nominations, including in relation to reversionary pensions (ie for any account-based pensions and transition to retirement income streams that the member has in place at the time of their death).
However, having a tailored BDBN prepared by an expert SMSF lawyer is recommended to ensure the binding nomination covers an individual’s specific circumstances. This is especially important where an SMSF member wishes to put in place a binding direction on the SMSF trustee in relation to:
- Payment of specific superannuation interests to their dependants or to their estate;
- Payment of particular fund assets to their dependants or to their estate or
- Implementing child pensions
We can provide an estimate in respect of completing your BDBN once we have your instructions and background details, including a copy of your current SMSF deed and will. To assist in determining if you require our premium tailored BDBN service we would appreciate the opportunity to discuss the advantages and disadvantages of taking this approach.
What’s included
Prior to providing any advice it is critical we review and understand our financial position and which asset owning and business entities you are involved with. This will allow us to complete and publish the following:
- Summary of your financial position
- Comprehensive review of your business structures
- Covering letter and a success planning completion checklist
With respect to your BDBN:
- Trustee resolutions
- Binding nomination
- With respect notifications to dependants
- Binding Death Benefit Nomination Memo
