SMSFs offer great flexibility with your estate planning needs. A member of an SMSF can make binding death benefit nominations (BDBN) that do not lapse — unlike many public offer superannuation funds, which tend to require binding death benefit nominations to be updated every three years.
A BDBN is like a Will for your SMSF. It means you can direct your SMSF balance to the exact person you want to receive that money. If set up correctly, a BDBN is very difficult to challenge in the event of a dispute.