A funeral bond is an investment that is used to help pay for your funeral. The bond generates interest and can be a valuable tool in any retirement planning process.
The total amount is paid on death to your estate or funeral director to cover funeral expenses.
Funeral Bonds purchased for less than $12,000 per person or couple are not included in Centrelink’s Assets and Income test.
It should enable you to:
- Increase Centrelink benefits, as these funds are excluded from the Assets and Income test.
- Help fund the cost of your funeral.
- Provide tax-free income for the benefit of your estate
- Reduce the income tested fee on your homecare as these funds are excluded from the income test.
Funeral bonds are designed to help increase your Centrelink benefits while allowing for your funeral expenses.
You need to know:
If you invest more than the exempt funeral investment threshold, the bond is not exempt and the whole investment is assessable under the income and assets tests. Interest earned does not count towards the threshold.