I have previosuly learnt about the use of binding financhial aggrements on supperannuation funds. I however am wondering for the purpose of assets listed in a will are binding nomination forms required or is simply
testamentary capacity in the will equivalent to a binding nomination?Cheers
Mate, I don't know what you mean.
Binding financial agreements are usually agreements between parties to a domestic relationship under the Family Law Act.
With Super there are Binding Death Nominations (or Binding Death Benefit Nominations) which is where a superfund member directs the fund to pay their super in a certain way or to a certain person on their death.
Testamentary capacity is having the ability to be able to do a will and understand it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Well to help, binding is (The trustee MUST distribute funds in a certain way) and non binding is (The trustee has discretion at hand when distributing funds)
I read someone previously talking about binding nominations for a will. Which translates to me as that if the will is binding then the trustee of the trust (If assets in trust) OR the executor MUST distribute funds in a certain way.
Or is binding and non binding only relevant to suppermannuation funds………
My question is asking if a will which is written by someone with testamentary capacity is equivalent to a binding nomination, i.e (Trustee or executor) MUST distribute assets/funds in a certain way.
Or are there other forms/procedures you should follow to make a will binding….?
Sorry, still confusing.
A will is binding. The executor must carry out the testators intentions – unless a court declares otherwise.
Wills can have trusts set up in them. The terms of the trust could be discretionary with the trustee deciding who to dstribute to and how much. So a will can be binding, but have a discretionary trust in it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Okay, thanks. You answered my question.
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