Essentially, upon your death, your super may end up been paid / transferred to the people you did not intend to receive it and the people that you did intend to receive it could get nothing.
However, Section 59(1a) of the Superannuation Industry (Supervision) Act 1993 (SISA 1993) states that provided the trustee of the Superannuation Fund does not breach the superannuation regulations, the superannuation fund may permit a member to give notice to the trustee that binds the trustee to pay the death benefit (decreased members balance) to a certain person. Basically by having and BDBN in place you are much more certain of where your superannuation will end up compared to leaving it purely at the trustee's discretion.
The conditions for a BDBN include. http://mcnamaraandco.com/news/2012/09/what-is-a-death-benefit-nomination-dbn/
If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com
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