Estate Planning
A flexible and tax-effective way to transfer wealth between generations.
The Situation
The largest wealth transfer in Australia’s history is underway.
Decades of strong economic growth, record house prices and growing superannuation balances has meant baby boomers have amassed $3.5 trillion, with a large proportion of this wealth expected to pass onto the younger generations. It’s expected by the time we reach 2050, $224 billion in that year alone will be passed on through inheritances.
Investment bonds offer a range of unique benefits that are often ideal in meeting the estate planning needs of clients, with tax advantages such as the 30% tax-rate, paid by the bond provider and not the investor, and with proceeds paid tax-free to beneficiaries upon death.
Benefits for your customers
The KeyInvest Life Events Bond allows investors to control how and when their wealth is transferred with customisable features that offer reassurance, flexibility and control, without additional costs.
Option comparison
With a beneficiary nominated, the bond becomes a non-estate asset, which means it is protected from will and estate disputes[1], ensuring funds can be passed on to others with certainty. There’s no tax when changes are made to beneficiary nominations.
| Estate Proceed Comparison | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| KeyInvest Life Events Bond | Funds distributed via a will | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TAX PAYABLE BY BENEFICIARY | Proceeds paid to beneficiaries Tax-Free at Death | Tax may be payable by beneficiaries depending on the assets*, and generally not paid until realised. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CHALLENGES & DISPUTES | Becomes a non-estate asset when a beneficiary is nominated which means it’s protected from wills & Disputes[1] | Assets passed on via a will may be contested under certain circumstances. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROBATE | Does not apply | Possible delays & costs associated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other benefits & features:
- Nominate any beneficiary including relatives, friends, companies, trusts or bequeath to a charity.
- Control how and when wealth is transferred using KeyPlanner.
- Leverage the Child Advancement Option to choose the transfer date when investing for children.
- 30% tax-rate paid by KeyInvest which can be further reduced by tax credits.
- Proceeds are paid to beneficiaries tax-free at death.
- Fully tax-paid after 10 years.
- No tax to pay personally while invested and therefore nothing to report to the ATO.
- No contribution limit in the first year, then contribute 125% of the previous years contributions thereafter.
- Funds are accessible at any time and without restriction. [2]
- Choose from over 40 investment options and switch between investment options tax-free.
- Highly Recommended by Lonsec. [3]
*For example, if paid from super at death to a nominated beneficiary who is an adult child, tax may be levied. The amount of tax levied depends on the assets in the super fund.
This example is intended for Financial Advisers only and does not represent professional investment or taxation advice. The information presented does not take into account any person’s objectives, financial situation and needs.
Why KeyInvest
We’re an independent, member-owned mutual friendly society, formerly known as IOOF-SA.
Governed by the Life Act, we provide investment solutions with unique tax treatment.
We provide customisable features for a variety of situations.
We’re low-cost and feature rich. We don’t charge additional admin fees for additional features.
We have a personal touch, caring deeply about our members and partners.
We’re committed to offering high-quality products that deliver exceptional outcomes.
How you can help your clients?
Support your clients bespoke estate planning needs with a KeyInvest Life Events Bond and offer reassurance, flexibility and control.
Take advantage of the tax benefits and customisable estate planning features that are available without additional costs.
Leverage KeyPlanner’s flexible features to control how and when funds are transferred and accessible to beneficiaries. Choose a vesting date when investing on behalf of a child.
With a nominated beneficiary, the bond becomes a non-estate asset that’s protected from will and estate disputes[1]. There are no beneficiary restrictions and changes can be made at any time.
30% tax rate paid by KeyInvest, not the investor and paid tax-free to the beneficiaries upon death, regardless of the policy duration.
Highly recommended by Lonsec*
“Lonsec considers the investment bond to be the preferred entry point to the sector. The issuer of the investment bond has competitive advantages in most areas of assessment in people, process and design, with no areas of material weakness.” – Lonsec Research Pty Ltd
*Ratings are only one factor to be taken into account when deciding to take out a financial product. Refer to the disclaimer below. [3]
We’d love to hear from you.
