“For financial advisers,” says BT’s Head of Financial Literacy and Advocacy, Bryan Ashenden, “It’s very important to know your client’s superannuation wishes in the event of their death, to avoid legal risk or reputational fallout. Equally, remembering super can only be distributed to someone who qualifies as a dependant at the time of death, or the estate, is important when family circumstances have changed.”
You don’t have to look far for scenarios with potential to add complexity into deciding how to distribute someone’s superannuation benefit in the event of their death.
Consider a scenario of someone who might have multiple children to different partners. Or a person who might have adult children, and possibly grandchildren, but who chooses to remarry later in life. Or the person who has a child outside of a long-term marriage. In many of these scenarios, family dynamics – and estate planning needs – can shift quickly.
“Whatever the situation,” says Ashenden, “these case studies do demonstrate how complex family circumstances can become and how essential it is for advisers to understand all superannuation death benefit options, and which ones best match client’s wishes.”
There are four common death benefit nomination types used across the Australian superannuation landscape:
“Without a nomination, it’s up to the trustee to decide where the money goes,” explains Ashenden. “The trustee must act in accordance with its trust deed, and the trust deed for every super fund can be different. In BT Panorama, if there is no nomination, the Trust Deed directs us to pay the benefits to your estate, which then hinges entirely on your will and how well it has been drafted.”
Ashenden explains “A trustee discretion nomination is, in essence, a request. The trustee is not obligated to follow it – although they typically will. That might work well for some situations, however, it can leave the door open to dispute in complex family situations.”
This option doesn’t expire, doesn’t require the same formalities as a three-year binding death benefit nomination, and is generally binding under the Trust Deed for BT Panorama. However, “it can be invalidated by significant life events, such as marriage or the birth of a child”. In such instances, the trustee can use discretion to reflect the member’s updated family circumstances when distributing benefits.
The BDBN strictly adheres to the wishes of the deceased. It is valid for three years and must be renewed with a signed, witnessed form. If not renewed, it reverts to trustee discretion (non-binding) nomination. Importantly however, major life changes – such as marriage, divorce or children – do not automatically invalidate it.
“For example,” Ashenden explains, “If you nominated your child as beneficiary and then divorce and re-marry, that would not invalidate the binding nature of this type of nomination.”
“Your child would remain the beneficiary until you amended it,” Ashenden says “however, your new spouse won’t be entitled to anything, unless you actively change your nomination”.
A dependant for superannuation purposes includes:
Spouse: Legally married, de facto, or registered under state/territory laws
Child: Biological, adopted or stepchild
Financial dependant: Someone reliant on you for financial support
Interdependency relationship: A close personal relationship involving mutual support and care
Ensuring nominated beneficiaries meet these definitions is essential to ensure superannuation benefits are distributed as intended. This is the first thing that is checked by the Trustee under any nomination type.
Recognising the importance of choice and flexibility for advisers and their clients, BT Panorama will introduce the three-year binding death benefit nomination (BDBN) option for super and pension accounts from 1 October 2025.
The addition addresses feedback from advisers about the importance of this nomination type, particularly to those migrating from the Asgard platform.
“In early 2026, Asgard clients will be migrating to BT Panorama,” explains BT’s Head of Distribution, Jason Brown. “Asgard has had three-year binding death nominations for some time, and advisers have been telling us how much they value this nomination type and how important it is for making sure the transition to BT Panorama is as seamless as possible for their super and pension clients,” he said.
“We’ve listened and built it into Panorama. All migrating Asgard members and existing Panorama super and pension members will have access to the three-year BDBN feature,” he said.
Transformation and Advice Technology Manager, Melissa Rhoades says the three-year binding death benefit nomination option is ideal when client’s wishes are clear and regularly updated and their situation is unlikely to change in the ways that invalidate a non-lapsing nomination. However, she recognises that the three-year binding nomination isn’t always appropriate for every circumstance.
“Let’s say the following scenario transpires for your client:
You client has a long-term wife and two daughters. Then he has an affair... And a baby.
Does he want only the wife and two daughters to receive the money if he dies? That’s what would happen under the three year binding nomination if he has not divorced his wife or updated the nomination before his death.
Or does he want the wife, two daughters, and the new child to each receive something? That is a possible result under the non-lapsing option, as the new child will invalidate the non-lapsing nomination and trustee discretion will then apply.
The new child could be taken into consideration and provided for in some way if the Trustee deems that appropriate,” Rhoades says.
“Advisers may be underestimating the value of trustee discretion in situations where family dynamics have changed. The non-lapsing binding nomination allows room for those changes to be reflected – especially when clients forget or delay updating their nominations.”
“The difference in treatment under different nominations is important for advisers and their clients to understand, to ensure they use the right nomination type for their client’s current and possible future circumstances The bottom line is that any nomination should be regularly reviewed and updated, otherwise unintended consequences can arise.” Rhoades said.
The forthcoming expansion of BT Panorama’s nomination offerings underscores its commitment to responding to adviser needs and improving client outcomes. “This is about giving advisers the tools they need to confidently handle a range of complex client scenarios,” Brown says.
Bryan Ashenden adds that no matter how many products exist, the key is knowing what the client wants:
“Advisers must have these conversations and document them thoroughly. Clarity in client wishes means clarity in outcomes, reducing disputes and reputational damage.”
As BT Panorama prepares to offer expanded nomination options, advisers should prepare clients by reviewing existing client nominations, understanding the nuances of each option, and advising accordingly.
“We’re keen for advisers to understand all four options fully and to ensure they select the nomination that best fits each client's unique circumstances,” Brown adds. “It's about being proactive—not just waiting until there's a problem.”
To learn more, BT Panorama advisers can contact their BT Business Development Manager or the Technical Services team for further details.
Information current as at 1 August 2025.
This communication has been prepared for use by advisers only. It must not be made available to any client and any information in it must not be communicated to any client. This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to these factors before acting on it.
All examples and images are for illustrative purposes only. Your portfolio value and performance are likely to be different and will depend on the investment options you have selected and the time period over which you are invested in those options. Past performance is not a reliable indicator of future performance.
This information has been prepared by BT Portfolio Services Limited ABN 73 095 055 208 AFSL 233715 (BTPS), the operator of Panorama Investments; and BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 (BTFM) the trustee of Panorama Super, which is part of Asgard Independence Plan Division Two ABN 90 194 410 365. Westpac Financial Services Ltd ABN 20 000 241 127 AFSL 233716 (WFSL) is the responsible entity and issuer of interests in BT Managed Portfolios. Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 (Westpac) is the issuer of the BT Cash Management Account (BT CMA) and the BT Cash Management Account Saver (BT CMA Saver). Together, these products are referred to as the Panorama products.
For advisers with clients in pension phase, estate planning also needs to consider what will happen with the client’s pension payments when they pass. A reversionary death benefit nomination, which can only be made to a spouse or child under 18, applies when superannuation has entered pension phase and sets out who should continue to receive the pension payments upon a member’s death.
This nomination offers three key advantages under Panorama:
Speed: Payments generally transfer to the nominated beneficiary without delay.
Financial planning flexibility: With a binding reversionary nomination, beneficiaries have 12 months before the pension’s value is counted towards their transfer balance cap (currently $2 million), giving them time to restructure their finances.
The option of a secondary binding nomination: With a reversionary nomination you can also make a secondary nomination of beneficiaries if the primary nominated beneficiary isn’t able to inherit for any reason.
“For pension-phase clients, this option can offer critical peace of mind,” says Ashenden. “It ensures the pension benefits can be dealt with seamlessly, providing breathing space and avoiding the complexity of alternative arrangements.”