Do You Have an SMSF?18 May 2023
The High Court has confirmed that Binding Death Benefit Nominations in SMSFs can last more than 3 years, subject to the terms of the Trust Deed.
In Hill v Zuda  HCA 21, the High Court of Australia considered the manner by which reg 6.17A of the Superannuation Industry (Supervision) Regulations 1994 (Cth) applied to SMSFs. The full judgment of the High Court can be found at https://www.hcourt.gov.au/cases/case_p48-2021
What does this mean for your Estate Planning?
In practical terms, Hill v Zuda means that members of SMSFs can prepare Binding Death Benefit Nominations to last more than three years, subject to the terms of the SMSF’s governing Trust Deed.
The decision is a timely reminder to review existing Estate Planning arrangements including SMSF Trust Deeds to ensure that the deed allows the making of Binding Death Benefit Nominations that do not expire by virtue of time, and to ensure that the Binding Death Benefit Nomination reflect your overall estate planning objectives.
For more information about Estate Planning, SMSFs and Binding Death Benefit Nominations please contact us.