AFSL 241421, Telephone: 03 8580 4000 Centrelink will not include the value of a funeral bond when conducting an assets test in relation to a claim for benefits. But it can … A funeral bond is an investment product that helps people save for funeral expenses, and the money can only be withdrawn after a person dies. The benefits can only be used to meet your funeral expenses. If you jointly own a funeral bond, we count it as a single bond that you own. An investment in a Funeral Bond may also assist Investor/s eligibility for a higher rate of Centrelink/DVA pension (due to the Federal Government’s classification of a Funeral Bond as a sole purpose investment.) Questions? These can include saving family members the financial and emotional burden of organising a funeral, being able to choose the exact nature of their funeral service or even receiving a favourable assessment from Centrelink in terms of the aged pension. If you have superannuation, your family may be able to pay for your funeral with it. Like prepaid funerals, Centrelink will not include the value a funeral bond, up to the value of $12,500 (indexed to inflation), in your assessable assets. Our investment bonds can help you accumulate wealth for the future. ABN 27 087 648 842 By completing your details you agree that … PO Box 7702 For more information, contact a Financial Adviser or KeyInvest on 1300 658 904. Multiple Ownership Options. When you pay for your funeral in advance Centrelink will require you to get a contract that both: sets out the services you’ve paid for; states that there are no more costs to pay. This means if you invest up the threshold, your funeral bond is exempt from the assets and means income test. If you are a pensioner, there may be benefits in contributing to a funeral bond in relation to Centrelink’s income and asset tests, although we would recommend that you seek advice directly from Centrelink in this regard. Benefits of planning ahead with a. This can help to reduce the impact of the Taper Rate and potentially increasing your Centrelink Aged Pension. 2 May 2019 . Centrelink Threshold increased to $13,250 for funeral bonds. Foresters Financial provides marketing and management of investment and insurance products, including friendly society bonds, funeral bonds and death and distress benefit funds. An investment in a Funeral Bond may also assist Investor/s eligibility for a higher rate of Centrelink/DVA pension (due to the Federal Government’s classification of a Funeral Bond as a sole purpose investment.). This means the Funeral Bond Allowable Limit is the same as for any other bond. the amount invested in the bonds to be exempted does not exceed the Funeral Bond Allowable Limit. Funeral bonds are also exempt from the tests if your investment is no larger than $13,500, which is called the Funeral Bond Allowable Limit. • Funeral bonds must be capital guaranteed investments. For the 2016-17 financial year, the threshold has been increased to $12,500. Melbourne VIC 3004, PO Box 7702 How the Funeral Fund works 4 3. *Note: - If you buy a cemetery plot for yourself without prepaying your funeral services, the value of the cemetery plot, regardless of its value, is not counted under the income and assets tests. Issued, managed and administered by . Benefits of investing in the Funeral Fund 6 4. Funeral Bond over the term of the Bond are claimable upon the death of the last surviving life insured. It should only take approximately 10 minutes. If you have more than one and you do not know which, if any, of your bonds can be exempt, you will need to provide documentation that shows the amount invested in each bond, their current value, and your contract with a funeral director. How does this work? The allowable limit for this bond is the same as for any other – not double. Funeral Bond Allowable limit. If there are enough funds to cover all funeral costs when the time comes to plan the funeral, any money from the investment that is not needed cover the costs will be returned to your estate. Once received, payment of the claim may be made within 7 business days directly to the Funeral Director with any surplus funds being paid to the investor’s estate. This means that investments up to this threshold may be exempt from the assets and means income test. KeyInvest is a trading name of KeyInvest Ltd ABN 74 087 649 474 AFSL 240667. If you invest in a funeral bond and do change your mind at a later date, you are able to leave the investment in place, cease making additional contributions and the capital, with subsequent earnings (i.e. It is important to note that current legislation does not permit Funds set aside in a Funeral Bond, to be released until evidence of a funeral has taken place ensuring the investment’s intended purpose is fulfilled. As at 1 July 2020 the allowable limit is $13,500. The KeyInvest Funeral Bond is a simple financial solution to meet future funeral expenses. However, in all cases, a burial plot and/or prepaid funeral are exempt. Funeral Bonds, Centrelink and You Perhaps the biggest advantage of a funeral bond is that they can be exempt from Centrelink means testing. However for Centrelink and Veterans' Affairs pensioners to qualify for an exemption under the Incomes and Assets Test, your contribution to a funeral bond is subject to a Government threshold (see Pension Advantages for explanation) and you cannot have more than two funeral funding … Melbourne VIC 3004 If peace of mind is important to the Investor, then the advantage of choosing the Capital Guaranteed investment option is that the guarantee ensures the monies invested are protected from any market fluctuations over time, There are no restrictions on applying due to the age or health of the Investor, No contribution limitations, although the amount of the investment should not exceed future anticipated funeral costs, Individual or joint ownership is permitted, The Funeral Bond is a tax paid investment – so there is nothing to report to the ATO whilst invested (if lodging an annual tax return). Growth earnings of the Funeral Bond are internally taxed at a maximum of 30% and Capital Guaranteed. Risks of investing in the Funeral Fund 6 5. Facsimile: 03 9329 7263. A real benefit of forward planning this way is to alleviate or remove the financial burden and stress on loved ones at the time of the Investor’s passing. However, in all cases, a burial plot and/or prepaid funeral are exempt. U Ethical Funeral Fund . Our office hours are: pension supplement Energy supplement Total $868.30 $70.30 $14.10 $952.70 $22,575.80 $1,827.80 $366.60 $24,770.20 Couple (each) How we invest your money 7 6. Centrelink Benefits. To qualify, there are certain Centrelink conditions, so investors may either enquire directly with Centrelink or contact one of our helpful KeyInvest Client Services Representatives. Investors have the choice in the underlying investment options to invest in either the Capital Guaranteed or diversified (unitised) Investment options. (excluding Victorian public holidays), Level 4, 417 St Kilda Road The KeyInvest Funeral Bond Capital Guaranteed option is managed by Janus Henderson (Henderson Group PLC) and the KeyInvest Funeral Bond diverse unitised options are managed by Vanguard (The Vanguard Group) on behalf of KeyInvest. Under current legislation, the sole purpose nature of Funeral Bonds allows them to be an exempt “funeral investment” as defined in the Social Security Act 1991. On 1 July every year, the Funeral Bond Allowable Limit is set. A headstart for your children Starting an education bond is easy. When KeyInvest receives a claim on a funeral policy, the objective is to expedite the process as quickly as possible. Currently an individual investor can contribute up to $13,500* in a KeyInvest Funeral Bond and this amount is exempt from the age pension Income Test, Assets Test and deeming provisions. For the current 2018 – 2019 financial year, the limit has been set at $13,000. Get in touch with us today! Free Call: 1800 645 326 Melbourne VIC 3004 Comments? This application form accompanies the Australian Funeral Bond Product Disclosure Statement. As at 1 July 2020 the allowable limit is $13,500. An exempt Funeral Bond must meet the following criteria; The interest must … At Centrelink a ‘funeral bond’ is managed investment with some special features. AFSL 241421, Telephone: 03 8580 4000 You and your partner can both invest in a single bond. You and your partner can both invest in a single bond. Should final costs be either more or less than the investment, we will either issue an account or a refund to the estate for the balance. Apply for an Australian Funeral Bond. Read more about it on the Centrelink website. What is a Funeral Bond? This limit is updated every July in line with inflation. These funds can only be withdrawn upon your death for this sole purpose. These will be explained further below. For more information, read about the Foresters Funeral Bond here, or take a look at the Department of Human Services website here. A funeral bond does not lock in the price of the funeral, it instead earns interest over the life of the deposit. The Funeral Bond Allowable Limit is indexed in line with CPU pension increases every 1st July. The Bendigo Funeral Bond (“the Bond”) is an investment product issued by Australian Friendly Society Limited (“the Society”), ABN 29 087 648 851 AFSL 247028, with benefits provided by the Society’s Funeral Benefit Fund established under Schedule 1, Rule E of its constitution and administered by Sandhurst. Funeral Bond Product Disclosure Statement, Growth earnings of the Funeral Bond are internally taxed at a maximum of 30% and. Under the Centrelink rules, where a one has both a prepaid funeral and a funeral bond, the funeral bond will not qualify for an asset exemption. So if you are considering a funeral bond, or any other method to cover your funeral expenses (i.e. The following guide includes information from Centrelink that you should consider before considering a prepaid funeral in Brisbane, Perth and other cities. Contents 1. It changes every 1 July. This may result in an increase of up to $1,053 in extra pension for an individual or for couples (double that amount) and a total increase of up to $2,106 when separate policies are taken out. How do Centrelink assess prepaid funerals? If the deceased had a prepaid funeral plan, funeral bond, or funeral insurance, this could cover most or all of the funeral costs. It changes every 1 July. Up to a certain limit ($13,250 as at 1 July 2019), a FuneralBond is exempt from the Centrelink and the Department of Veteran’s Affairs assets test as well as the income test that applies to the age pension, service pension and other means tested Government entitlements. A funeral bond can be in your own name, in joint names (with the benefit paid in full upon the death of the first joint owner), or can be assigned to a funeral director. KeyInvest is not authorised to carry on business in any country other than Australia. An exempt funeral investment is usually called a funeral bond or funeral fund. Tax Benefits. A maximum of two funeral bonds can be held and their combined total cannot exceed the maximum investment threshold. It’s the last point that many people are unaware of, especially the way in which different investments aimed at paying for funeral expenses are treated by Centrelink. Note: this is currently $11,000 and is indexed in line with CPI pension increases every 1 July. Taxation Benefits. Foresters Financial is a proud Australian member-owned investment and insurance financial organisation with great funeral bonds, prepaid funeral plans, investment bonds and affordable insurance products. You can start your application online now! ABN 27 087 648 842 Free Call: 1800 645 326 To help you make an informed investment decision, we recommend you obtain independent professional advice from a licensed financial adviser and/or tax adviser before investing. Interest must be added to the capital amount of a funeral bond such that the accumulated value of … 9:00AM — 5:00PM The following table summarises the Centrelink treatment of different combinations of funeral investments: The founding principles of Foresters Financial are to provide financial and social benefits as well as support to Members and their families in times of unemployment, sickness, death, disability and old age. Call Sureplan today Give us a … Prepaid funeral expenses 2 or buying a burial plot, irrespective of their value, are both exempt from Age Pension assessment. interest) will be paid upon your death. Super. Uniting Ethical Investors Limited trading as U Ethical . Pensions Pension payment rates Family situation Rate (pf) Rate (pa) Single1 Plus max. How does this work? The information contained in this website is directed to and available for Australian residents only. It is important that you consider the information contained in the Product Disclosure Statement for a particular product before making any decisions about whether to acquire the product. Centrelink fact sheet The following Centrelink facts and figures apply for the period 1 April to 30 June 2021. Education and funeral bonds are provided by investment bond specialist, Lifeplan. The information on this site is general in nature and does not take into account your personal investment objectives, financial situation or needs. This can result in an increased pension entitlement. Funeral bonds are investment products that help you save towards funeral expenses. A funeral bond is an investment towards the cost of a funeral. For the current 2018 – 2019 financial year, the limit has been set at $13,000. As investors’ needs and aspirations differ, you should consider whether investing in a Funeral Bond is appropriate for you. Funeral Bond. Offer Document . To do this, it will be necessary for the Investor’s family or representative/s to provide all necessary documentation (including an invoice from the Funeral Director) to KeyInvest. Also, money invested in funeral bonds (up to an allowable limit) is not subject to asset or income tests for your Age Pension. With a range of specialist, tax-effective options, you will have the flexibility and support to help you save for key life events. Copyright © KeyInvest 2017 unless otherwise noted. Bonds that aren’t exempt About U Ethical 3 2. If you jointly own a funeral bond, we count it as a single bond that you own. The potential pension benefits apply under current legislation that, up to $12,000 (indexed annually) is treated as an asset exempt from Centrelink’s income test, assets test and deeming provisions. Flexible Payment Options. A Funeral Bond also has other benefits including potentially significant taxation and pension benefits. Melbourne VIC 3004 If you have a prepaid funeral plan and have a funeral bond as well, the funeral bond will be counted as an asset and assessed under the deemed income rules. As an example, it’s possible that investing in a Funeral Bond may lower a clients total assessable assets and increase the amount of age pension they receive from Centrelink. There is no requirement to nominate a Funeral Director when setting up a policy. Level 4, 417 St Kilda Road Centrelink does not count funeral … If you’re interested in learning more about our funeral bonds, don’t waste another moment. the earnings do not form part of annual (assessable) taxable income. Funeral bond or funeral fund purchases are exempt to a value of $13,500 3 and this applies to a client who is single, or to each member of a couple providing each … Centrelink exempts funeral bonds from the assets and income test – Funds held in a funeral bond (up to a maximum of $12,500) are exempted by Centrelink from the assets and income test that is used to assess eligibility for the Aged pension. Depending on a investors specific circumstances, this can have the effect of providing a boost to their age pension payment. Otherwise there are a number of Centrelink allowances that may be available to assist pensioners to pay for a funeral. Annual Bonuses. Centrelink/DVA apply a Funeral Bond Allowable Limit. Facsimile: 03 9329 7263. What this means is that people looking to reduce their assessable assets for the Services Australia (Centrelink) mean test can potentially use a Funeral Bond. Funeral Bond Allowable limit. Under the Centrelink rules, where a client has both a prepaid funeral and a funeral bond, the funeral bond will not qualify for an asset exemption. 3. An investment in a funeral bond is similar to a trust account which accrues bonuses and becomes payable at the time of death. ABN 46 102 469 821 AFSL 294147 . When you invest in a funeral bond, Centrelink will need to know how much has been invested and whether it is individually or jointly owned. The Society is associated with the Bendigo and Adelaide Bank and its related entities. As from 1 July 2019 the maximum investment threshold at which a funeral bond is treated as an Exempt Asset for pension and aged care purposes was increased from $13,000 to $13,250. There is no maximum contribution amount or number of funeral bonds that a member can use for their funeral cover. Centrelink lump sum bereavement payment and other pensioner benefits This means the Funeral Bond Allowable Limit is the same as for any other bond. The following table summarises the Centrelink treatment of … Monday to Friday Funeral Bond. There are several reasons why people decide to address your funeral costs in advance. On 1 July every year, the Funeral Bond Allowable Limit is set. You can still invest more into your funeral bond than the threshold, however you will need to advise Centrelink. Neither the Bendigo … As an example, it’s possible that investing in a Funeral Bond may lower a clients total assessable assets and increase the amount of age pension they receive from Centrelink. The Funeral Bond Allowable Limit as at 1 July 2019 is $13,250 and is indexed in line with CPI pension increases each year on 1st July. Increasing your Centrelink Aged Pension ’ t waste another moment also has benefits. In a funeral bond is a simple financial solution to meet future funeral expenses ( i.e $.. At Centrelink a ‘ funeral bond, we count it as a single bond potentially significant and... 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