A binding death benefit nomination (BDBN) is a written instruction to your super fund’s trustee that legally requires them to pay your super death benefit to the person or people you nominate — in the proportion you specify. Without a valid BDBN, the trustee has discretion over who receives your super, and their decision may not match your wishes.
A BDBN is one of the most important pieces of super estate planning you can put in place.
Why a BDBN Matters
Without a BDBN (or with an expired one), the trustee of your fund considers all potential beneficiaries and decides the split. This trustee discretion:
- Can result in your super going to someone other than your intended recipient
- Can cause delays while the trustee investigates and deliberates
- Can lead to disputes between surviving family members
- Can see super paid to your estate rather than directly to your spouse or children
A valid BDBN removes this uncertainty. The trustee must follow it.
Who You Can Nominate
A BDBN can only direct super to:
- Your legal personal representative (LPR) — your estate, which then passes under your Will
- Your dependants as defined under the SIS Act:
- Spouse or de facto partner (including same-sex)
- Children of any age
- Any person in an interdependency relationship with you
- Any person financially dependent on you at the date of death
You cannot nominate: Adult children who are not financially dependent, friends, siblings, parents, or anyone who does not meet the dependant or LPR criteria. If you want to benefit someone outside these categories, you must nominate your estate and provide for them in your Will.
Lapsing vs Non-Lapsing BDBNs
Lapsing BDBN
- Valid for 3 years from the date signed
- Automatically expires after 3 years — becomes non-binding
- You must renew it every 3 years to keep it current
- Available at virtually all industry and retail super funds
Risk of lapsing: If you don’t renew your BDBN and you die after it has expired, the trustee reverts to discretion. Many Australians have out-of-date BDBNs without realising it.
Best practice: Set a calendar reminder 3 months before the 3-year anniversary date, and renew promptly.
Non-Lapsing BDBN
- Does not expire — remains valid until you change or revoke it
- Available at some funds (check your fund’s trust deed and governing rules)
- Generally available in SMSFs (where the trust deed can be structured to allow non-lapsing nominations)
- Less common at industry funds — AustralianSuper, for example, offers a non-lapsing option; others do not
A non-lapsing BDBN is preferable for estate planning certainty, particularly as you age and may forget to renew.
How to Make a BDBN — Step by Step
Step 1 — Check your fund’s rules
Your fund’s trust deed determines whether BDBNs are available, whether they are lapsing or non-lapsing, and any specific requirements. Download the relevant Product Disclosure Statement (PDS) or contact your fund.
Step 2 — Complete the nomination form
Most funds have a specific Binding Death Benefit Nomination form (not the same as a “non-binding” or “preferred” nomination). Key details required:
- Full name and date of birth for each nominee
- Relationship to you (spouse, child, estate, etc.)
- The percentage each nominee should receive (must total 100%)
Step 3 — Sign the form in front of two witnesses
A BDBN is only legally valid if signed in the presence of two witnesses who:
- Are both aged 18 or over
- Are not named as nominees in the nomination
The witnesses must sign at the same time as you — not later.
Step 4 — Submit to your fund
Submit the completed, witnessed form to your super fund — by post, in person, or through the fund’s online portal if they offer this. Keep a copy.
Step 5 — Confirm receipt
Follow up with your fund to confirm the nomination has been received and recorded. Ask for written confirmation of the date the nomination was made and its expiry (if lapsing).
Multiple Funds — One BDBN Per Fund
If you have multiple super accounts, you need a separate BDBN for each fund. A BDBN made with one fund does not apply to another.
If you consolidate your super into a single fund, you only need one BDBN — another reason to consider consolidation.
Changing or Revoking a BDBN
You can change or revoke a BDBN at any time — by completing a new nomination form. The new nomination replaces the old one. Circumstances where you should update your BDBN:
- Relationship change (marriage, separation, divorce, new de facto partner)
- Death of a nominated beneficiary
- Change in financial dependency status of a nominated person
- Birth of a child
- Change in your own wishes
- Approaching the 3-year expiry (lapsing BDBN)
Note on separation: A BDBN does not automatically become invalid upon separation or divorce. If you separate from your spouse and die before updating your BDBN, your ex-spouse may still receive your super. Update your BDBN immediately upon separation.
SMSF BDBNs — Additional Considerations
In an SMSF, the trustee (which may be you, if you’re a member-trustee) controls the fund’s rules. BDBNs in SMSFs:
- Are governed by the fund’s trust deed — the deed must specifically allow for binding nominations
- Can be set up as non-lapsing in many SMSFs if the deed permits
- If both spouses are member-trustees and one dies, the surviving spouse becomes the sole trustee — they then effectively control who receives the death benefit, potentially overriding the intention of an informal nomination
- A corporate trustee (a company acting as trustee) can help prevent this conflict — because the trust deed can direct how decisions are made even after a member’s death
SMSF estate planning should involve both an SMSF specialist and an estate planning solicitor.
Non-Binding (Preferred) Nominations
Some funds also offer a non-binding or preferred nomination — sometimes confusingly called a “death benefit nomination” without the binding qualifier. This is not a BDBN:
- It tells the trustee your preference but does not bind them
- The trustee considers your preference but retains discretion
- It provides guidance but not certainty
If your fund asks whether you want to make a “death benefit nomination,” confirm whether it is binding or non-binding. Only a binding nomination guarantees who receives the benefit.
Frequently Asked Questions
Does a BDBN override my Will? Super does not form part of your estate unless you nominate your LPR (estate). A BDBN directing payment directly to named individuals (e.g. spouse, children) takes effect outside your estate and independently of your Will. Only if you nominate your estate does your Will control how the super is distributed.
Can my BDBN be challenged? A validly executed BDBN that meets the fund’s rules is very difficult to challenge. However, challenges do occur — usually on grounds of incapacity, undue influence, or failure to comply with witnessing requirements. This is rare.
My fund doesn’t offer BDBNs — what can I do? A non-binding “preferred” nomination is better than nothing. Alternatively, consider consolidating to a fund that offers binding nominations. If you have an SMSF, ensure the trust deed allows for a BDBN.
Is a BDBN the same as a Will? No. A Will applies to your estate (bank accounts, property, personal assets). A BDBN applies specifically to your super. You need both.
For advice on your estate planning situation — including how to structure your BDBN alongside your Will — speak with a licensed financial adviser and an estate planning solicitor. See also: Death Benefits — Who Gets Your Super When You Die?