One area of control that is attractive to financial and estate planners relates to Binding Death Benefit Nominations (BDBNs). Industry and retail funds typically rely on a “one size fits all” approach involving a form that lacks even the flexibility to have an alternative beneficiary in the event that a nominated beneficiary pre-deceases the member (or is not eligible to receive a benefit).
To compete with SMSFs in this area, industry and retail funds should offer the flexibility in the BDBN Forms to:
Better still, funds could provide members with the option of completing a BDBN in a form other than that prescribed by the fund. Even if a small fee is charged to review non-standard BDBNs, this could be very attractive to members and their professional advisers.
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