Summary:

Michael Harris, a 55-year-old resident of Melbourne, Australia, had been diligently managing his finances and retirement savings.

He was a member of a self-managed superannuation fund and had executed a Binding Death Benefit Nomination (BDBN) directing how his self-managed superannuation benefits should be distributed upon his death. He had nominated his partner, Susan Thompson, as the sole beneficiary of his superannuation account.Tragically, Michael was involved in a fatal car accident, and he passed away unexpectedly.

His passing prompted the activation of the BDBN he had previously established.After Michael's death, his nominated legal personal representative discovered that his Binding Death Benefit Nomination was invalid and unenforceable due to certain technicalities. The self-managed superannuation fund legal representative trustee reviewed the nomination and found that it did not meet the strict requirements set by the fund's trust deed and the Superannuation Industry (Supervision) Act 1993.

Question:

Discuss a possible reason why the BDBN failed or was not accepted by the Superannuation legal personal representative of Michael acting as Trustee of the deceased's estate and SMSF. Include in the discussion the possible consequences for distribution of the super fund monies.

Answer rating: 100% (QA)

One possible reason why the Binding Death Benefit Nomination BDBN failed or was not accepted by the Superannuation legal personal representative of Mi... View the full answer