What it means
A binding death benefit nomination is a written direction to your superannuation fund stating who should receive your super death benefit. If valid, it generally compels the trustee to pay as directed, removing their discretion. To be valid, a nomination must usually be made in favour of dependants (such as a spouse or children) or your legal personal representative, and many lapse after three years unless renewed. Superannuation does not automatically form part of your estate, so a nomination is a key estate-planning tool.
How it's used
He made a binding death benefit nomination directing his super fund to pay his benefit to his wife.