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CFL Financial location Level 9, 360 Queen Street Brisbane, QLD 4000
fax CFL Financial 07 3328 8999
phone CFL Financial 07 3328 8988
Email CFL Financial mail@cflfinancial.com.au

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If you’re a successful and Motivated business owner, and want to set yourself up for retirement, this guide would be perfect for you. My clients who follow these 3 simple steps live with comfort, security and the peace of mind that financial success brings.

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The Retirement Prosperity Guide™

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If you’re a busy Professional and you feel like you’re not building your wealth fast enough and you want smarter ways to utilise your cash flow, this guide is perfect for you. Clients who have used our strategies have the peace-of-mind knowing they have a ‘game plan’ for financial abundance.

Legal pitfalls of a BDBN

Posted on Sep 23, 2015 by CFL Financial

Despite its significance, there can be quite a few pitfalls that have the power to override the wishes in a binding death benefit nomination (BDBN) and render it invalid.

A BDBN is a member’s written direction to their super fund’s trustee that outlines who the trustee is to pay the member’s death benefit to upon the member’s death. BDBNs are a relatively new legal instrument, and as such, the laws regarding them continue to develop and change, which is why many pitfalls can exist to those who are unaware of changes. Getting a BDBN right is no easy tasks, as there are numerous risk areas including:

Careless wording
Many BDBNs can be easily challenged due to poor wording such as ‘the BDBN is only binding if it is to the trustee’s satisfaction’. This type of wording can easily give rise to argument if, for example, the trustee decides to reject the BDBN when the member dies.

Prior deed history
Most SMSF deeds are varied without proper checks on the prior document trail, including conditions and consents that must be satisfied. If an SMSF has existed for some time and undergone variations,  a deed history review may be warranted. Such a review should encompass:

– the original deed of establishment

– any subsequent deed of variation

– any deeds of change of trustee

It may be best for an experienced professional to conduct the review. Attending to any issues promptly can be far more cost effective than being exposed to future legal challenge.

Poor quality documents
Ineffective documents may result in a member’s super proceeds being paid to the wrong people. In quite a number of recent disputes, this has happened after an expensive and drawn out legal battle. While it can be tempting to save some money upfront by using a cheaper option, high-quality will always pay off in the long run.

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Retirement-in style

Retire in style checklist™

There are a few reasons why Business Owners need a Retire In Style Checklist

If you’re a successful and Motivated business owner, and want to set yourself up for retirement, this guide would be perfect for you. My clients who follow these 3 simple steps live with comfort, security and the peace of mind that financial success brings.

Retirement-prosperity-thumbnail

The Retirement Prosperity Guide™

Make sure you don’t miss out on the Retirement Prosperity Guide

If you’re a busy Professional and you feel like you’re not building your wealth fast enough and you want smarter ways to utilise your cash flow, this guide is perfect for you. Clients who have used our strategies have the peace-of-mind knowing they have a ‘game plan’ for financial abundance.

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Email:
Phone: 07 3328 8988
Fax: 07 3328 8999

Office Location:
Level 9, 360 Queen Street
Brisbane
QLD 4000

Postal Address:
GPO Box 2468,
Brisbane,
QLD, 4001

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