One of the key elements of your overall plan in running your SMSF is your Estate Plan. That is, what happens to your SMSF account balance and any insurance proceeds in the event of your death?
The payment of these are determined in accordance of the governing rules of the Fund and not as is commonly believed, in accordance with your Will. Superannuation benefits are dealt with outside of your Will and are protected from creditors.
You can direct your SMSF benefits to where you direct them to be paid after your death through a direction called a Binding Death Benefit Nomination “BDBN” which instructs the Trustee to pay your SMSF benefits to your dependants in the proportions set out. It is valid until altered or revoked.