![]() ![]() What if I change my mind about a funeral bond?Ī funeral bond is an investment owned by you. If you decide to enter into a pre-paid funeral contract with a funeral director, no maximum contribution applies. If you receive a means-tested government benefit and don't want this to affect your payments, the total amount you contribute should not exceed the 'exempt funeral investment threshold', which is $13,5/22 financial year. How will a funeral bond affect my social security entitlements? Your FuneralPlan Bond can be transferred to a funeral director under contract and you can pre-plan your funeral under this arrangement. Upon the death of one owner, the other owner must choose within 30 days to either continue the funeral bond, or have the benefits paid towards the funeral expenses.Ĭan I turn my FuneralPlan Bond into a pre-paid funeral plan? A FuneralPlan Bond can be held in single or joint names, however the benefit can only be used to pay for the expenses of a single funeral. My partner and I want to take out a joint bond. If you do not receive benefits, this threshold does not apply. If you receive Centrelink benefits and wish this to be exempt from both assets test and deeming provisions of the income test, you cannot exceed the threshold, which is $13,5/22 financial year. You can invest any amount into your funeral bond The total amount you you contribute should be reasonably commensurate with your expected funeral expenses. How much money can I invest in a funeral bond? Alternatively, you can start with a $100 lump sum with a minimum $50 per month on an instalment plan. You can open an account with a lump sum of $500 and top up at any time with a minimum of $50. The FuneralPlan Bond is available to anyone over age 16, individual or joint investors. ![]() It’s about what you want to achieve in life, while having the security to get out and do what makes you happy.īeing a member-owned company-also called a mutual- gives us the freedom to invest money back into the services and solutions that matter most to our members, customers and the Australian community. It’s your personal relationships and being connected to your community. It’s about your standard of living and feeling safe in your home. We’re committed to real wellbeing for all Australians, and for us, real wellbeing means so much more than physical health. Established in 1840, we were Australia’s first member-owned wellbeing company, delivering health, wealth and care services. This would avoid a lengthy probate process, so your beneficiaries will get their money much more quickly.Ī whole-of-life insurance policy is often used for this purpose, which remains in force until the policyholder’s death, as long as you continue paying the premiums.Funeral Plan Management is part of Australian Unity. So any payout won’t count towards your threshold and won’t be subject to IHT. This means that any money is paid out to your beneficiaries and not to your legal estate. Most life insurance policies will count as part of the estate unless your policy is written ‘in trust’, which can often be done at no extra cost when taking out your policy. Or a bank might release money if it’s paid direct to HMRC to pay an IHT bill.Ī delay in payment can result in HMRC charging penalties and interest on the amount of the Inheritance Tax which should have been paid. ![]() But where property is concerned, HMRC might accept staged payments until the property is sold. Normally, IHT needs to be paid before probate can be issued. This gives you the peace of mind that you’re not leaving your family and friends with a hefty tax bill to pay when you die. ![]() It can help protect your home and other assets from having to be sold to pay an IHT bill, which must usually be paid before probate is granted. Taking out a life insurance policy to pay some or all of an Inheritance Tax bill can make things easier on your family when it comes to sorting out your estate after your death. ![]()
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