Where valid, this results in the trustee being obligated to follow the instructions in the nomination.
It states who benefits are to be paid to and in what proportion. They provide certainty and peace of mind that your benefits will be paid as you intend.
A valid nomination to direct payment to your estate may then enable your superannuation death benefit to be dealt with pursuant to your Will which can allow for non dependants to benefit if you wish.
May be useful for dealing with blended families.
There are restrictions however, all the beneficiaries nominated must be dependants of you just before your death. You may nominate your legal personal representative (executor of your Will).
These nominations can be used to defeat family inheritance claims by ensuring the death benefit bypasses your estate.