This is a guideline only for the trustee in terms of who to pay a death benefit to.

One advantage is that it provides the trustee with guidelines as to how you wanted the benefit paid and to whom. They may still consider other circumstances and factors.

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.

Pension payments continue to your dependent beneficiaries.

The only people who can become a reversionary beneficiary are a spouse or former spouse, a child aged less than 18 years or any person where an interdependency relationship (defined by law) existed just prior to death.

The SCT is an independent tribunal set up to deal with complaints regarding superannuation funds.

If a beneficiary feels that they have not been adequately provided for or missed out on a superannuation death benefit, they may apply to the SCT for them to review the trustee’s decision.

This would not be available if a binding death benefit nomination was in place.

After review, the SCT has the power to either overturn or confirm the trustee’s decision with respect to that benefit.