I'd like some clarification on life proceeds within SMSF and BDBN. My wife and I both hold life insurance within our SMSF and as the fund owns those policies I presume that in the unfortunate event of death, the payout goes to the fund. I don't wish this to be the outcome. If I make a BDBN to go to my wife for example, do all the fund's assets have to go to her (or the estate if I nominate)? My intent is that ONLY LIFE INSURANCE PAYOUT is to be distributed to the nominated beneficiary (in my case, my wife). The way that BDBN are worded is that all proceeds of the fund will go to her. I don't wish to actually destroy/wind up the fund. I wish the current assets (unencumbered property, shares and cash) to remain in situ as a legacy and only life insurance payout to come out as cash so she can retire my personal investment property debt and make life easier for her and my daughter. Can BDBN specify that all life proceeds only shall be released to her as a dependent and that the remaining fund assets remain in the SMSF (move to her account)? Do we need to specify such within the trust deed or the BDBN form or both? Or, to be absolutely sure, should we just transfer our life policies into our personal names and dispense with the 15 % tax saving by having them in the SMSF? I don't wish to destroy the entire fund, only ensure she (personally) gets any death benefit (tax free) into the estate (for her) to retire investment debt. I am 51 and my wife is 48. Our daughter is a dependant aged 13. I have also heard about SMSF wills. Does anyone know much about these? Do their BDBN remain permanent until they are changed? Thanks for any light anyone can shed or any further reading/ links you may have.