Landmark High Court Decision on BDBNs

Question: Can a Binding Death Benefit Nomination for an SMSF last indefinitely?

Answer: On the 15th June 2022, the High Court handed down its decision in the Hill v. Zuda Pty Ltd as trustee for the Holly Superannuation Fund case.

In summary, members of an SMSF need not renew their binding death benefit nominations every three years. However, they should be reconsidered on a regular basis and more importantly, reviewed when major events occur in relation to the member’s nomination.

Cooper Grace Ward Lawyers partner Scott Hay-Bartlem has stated “……..that you need to go back and read the deed and do what the deed says…..”