Disclaimer
Warning: A member of an SMSF can make a death benefit nomination that is a binding direction on the trustee of an SMSF provided that is catered for in the governing rules of the fund and the form is completed correctly. Please ensure you review the Governing Rules of the fund before completing the nomination otherwise, this nomination may be deemed invalid in a court of law.
Binding death benefit nominations are legal documents and carry significant risk. We therefore highly recommend that the nomination is reviewed or completed by a Legal Representative.
Overview
Death Benefit Nomination forms (BDBN) can be produced via the Reports screen. BDBNs can be uploaded/attached to the member via the Member List.
- Minute/Resolution available;
- BDBN forms produced externally can also be uploaded to the Member List.
Rule/Clause Number
1. Prior to form preparation, add the Rule/Clause number of the SMSF's Trust Deed to Fund Details to pre-fill the Declaration and Acknowledgement section (point 2) of the BDBN.
2. Rule/Clause 7.4 is included in the Declaration and Acknowledgement section.
Prepare BDBN
1. Navigate to the Reports screen.
| From the Main Toolbar, go to Reports. | |
| Select Reports. |  |
2. From the Reports screen, under the Letters/Minutes section, drag and drop (or select Add) the Death Benefit Nomination Form to the landing page.
The Death Benefit Nomination Form and Death Benefit Minute/Resolution will attach to the Report Pack List.
3. Select Setting.
Complete the Report Settings.
| Setting | Explanation |
|---|---|
| Member Account | Select the Member Account the form is for from the drop-down list. The member code will display on the Death Benefit Nomination form. |
| Witness 1/2 | Select two witnesses. |
Save
Note: The My Nomination section will pre-fill based on the nominated beneficiary noted for the member account in Member List.
Upload BDBN to Member Account
1. Navigate to the Member Dashboard.
| From the Main Toolbar, go to Member. | |
| Select Member Dashboard. | |
| Select Members |
2. Next to the member's account, select Edit > View & Edit.
3. In the Member Beneficiaries section, click + Death benefit nomination to expand the menu.
4. Complete the form options.
| Option | Explanation |
|---|---|
| Nomination Type | Select Binding/Non-Binding and Lapsing or Non-Lapsing. |
| Name | Select a name from existing Members or the Contacts list. |
| Relationship | Choose from existing relationships or manually enter your own. |
| Proportion of Benefit | Enter the percentage of benefit proportioned to this individual. |
| Tier Direction | Select First or Second tier. |
5. Related documents and notes can be added if required in the Documents & Notes section below:
6. Once complete, select Save.