Budget 2008-09: Binding Death Nominations and SMSFs
21.10.08
The Tax Office has also released a Draft SMSF Determination which sets out the Commissioner’s preliminary view on whether a trustee of an SMSF can accept a binding death nomination from a member.
The Draft states that a trustee of an SMSF is permitted to accept a binding death nomination from a member, provided it is permissible under the fund’s deed.
A binding death nomination ‘binds’ a trustee of an SMSF to distribute the superannuation benefits of a deceased member in accordance with the nomination.
In the absence of a nomination, a trustee has the discretion to distribute a deceased member’s benefits in accordance with the superannuation law.
