What does binding nomination non lapsing mean?
A Non Lapsing Binding Death Benefit Nomination is a death benefit nomination made to the trustee of your superannuation account that does not have an expiry date. Traditionally, Binding Death Benefit Nominations had an expiry of 3 years. This is because a Will does not have the power to distribute your superannuation.
What is a lapsing binding death benefit nomination?
Binding death benefit nomination: This is a written direction from a member to their superannuation trustee setting out how they wish some or all of their superannuation death benefits to be distributed. The nomination is generally valid for a maximum of three years and lapses if it is not renewed.
How do you make a binding death benefit nomination?
The nomination must:
- be made to the trustee in writing and clearly set out the proportion of the benefit to be paid to each person nominated.
- be signed by the member in the presence of two witnesses over 18 years of age and who are not nominated as beneficiaries.
- contain a signed witness declaration.
What is the difference between binding nomination and non-binding nomination?
The difference between Binding and Non-Binding beneficiary nominations is that one is binding on the trustee and one is not. As the name suggests, a Binding Nomination is binding on the trustee. A Non-Binding Nomination on the other hand is more of a ‘wish list’.
What is non-lapsing death benefit?
A non-lapsing death benefit nomination is a request by you to the trustee to pay a death benefit from your Accumulate Plus or Retirement Access account to the person or persons nominated on the following form. This can provide you with greater certainty on who will receive your death benefit when you die.
What is the difference between non-binding and binding?
So long as the binding death benefit nomination is valid, the Trustee is bound to follow it. A non-binding death benefit nomination is a written request made by you that suggests to the Trustee the beneficiaries that may receive your benefit in the event of your death.
Is non-lapsing same as binding?
The difference between lapsing and non-lapsing superannuation nominations is that a lapsing nomination is generally valid for 3 years; whereas a non-lapsing nomination does not expire. A superannuation death benefit nomination can be binding or non-binding. A non-binding nomination has no expiry date.
What is a SIS Dependant?
A SIS dependant also includes someone who is a dependant within the ordinary meaning of that term (an ‘ordinary meaning’ dependant), such as a person who may not be a spouse or child but who depends on the member financially.
Can a non-lapsing death benefit nomination be made?
This nomination is made under s 59 (1) (a) of the SIS Act. A non-lapsing binding death nomination may only be made if permitted by the trust deed and with the active consent of the trustee. 7.29 When a binding nomination lapses, the nomination becomes non-binding.
How often do you need to update a binding death benefit nomination?
Traditionally, Binding Death Benefit Nominations had an expiry of 3 years. This would mean that you would need to update the nomination in writing every three years. However, a Non Lapsing Death Benefit Nomination removes the need for this regular update. Think of a superannuation nominations as a ‘Will’ for your superannuation savings.
What happens when a non binding nomination is made?
A Non Binding Nomination is a nomination made to the trustee that is not binding on the trustee. Therefore, upon death of the member, the trustee will consider the nomination that has been made by the member, but will use their discretion to make the final distribution of the deceased’s member benefits.
Can a death benefit nomination be made in New South Wales?
By contrast, in New South Wales, superannuation death benefits may be classified as ‘notional estate’ and brought within the jurisdiction of the court for the purposes of making a family provision order. [39] 7.35 The nominations covered by reg 6.17A (4) can only be made to the legal personal representative or ‘dependants’.
