Written by Steve Landers & Shara Cox

When it comes to estate planning, many people assume their Will covers everything. In reality, superannuation sits outside your estate — and without the right structures in place, your benefits may not end up where you expect.

Understanding how Binding Death Benefit Nominations (BDBNs), Wills, and reversionary pensions work together is key to ensuring your wishes are carried out.

Your Will: Only Part of the Picture

Your Will governs assets held in your personal name, such as property, bank accounts, and investments.

However, superannuation is typically held within a trust, meaning it does not automatically fall under your Will unless it is paid into your estate.

Binding Death Benefit Nominations (BDBNs)

A BDBN is a formal direction to your super fund trustee, specifying who should receive your super benefits upon your passing.

If valid, the trustee must follow your instructions.

Without a BDBN, the trustee has discretion to determine who receives your super — regardless of what your Will says.

Reversionary Pensions: A Different Approach

If you are already drawing a pension from your super, you may have the option to nominate a reversionary beneficiary.

This means that upon your death, your pension can automatically continue to your nominated dependant (commonly a spouse), rather than being paid out as a lump sum.

Reversionary pensions can offer several advantages:

Continuity of income for your spouse or dependant
Certainty around who receives the benefit
Potential tax advantages, depending on the recipient

However, they must be set up correctly at the start of the pension (or in some cases, updated later), and they need to align with your broader estate plan.

What Happens If You Don’t Have These in Place?

Without clear instructions — whether through a BDBN or reversionary pension — your super fund trustee will decide how your benefits are distributed.

This can lead to:

Loss of control over who receives your super
Delays in payment
Family disputes or challenges
Unintended tax outcomes

Key Pitfalls to Watch Out For

Even where strategies are in place, there are common issues to be aware of:

BDBNs expiring (often every three years)
Incorrect or invalid nominations
Outdated beneficiaries after life changes
Reversionary pensions not established correctly
Conflicts between your super instructions and your Will

The Importance of Coordination

Your Will, BDBN, and any reversionary pension should work together — not separately.

A well-structured plan ensures your super is distributed efficiently, tax-effectively, and in line with your intentions, while minimising stress for your loved ones.

If you’re unsure whether your super nominations or pension arrangements are set up correctly, now is a good time to review them.

Speak with our team to ensure everything is aligned and your estate plan works the way you intend.

Who Gets Your Super? Why Binding Death Benefit Nominations and Reversionary Pensions Matter