Financial Advisers / Adviser Solutions

The Adviser's Guide to Wealth Transfer

A practical guide for advisers navigating wealth transfer, estate planning and succession.

Transferring Intergenerational Wealth

Wealth transfer has become one of the most complex and consequential conversations in financial advice. Australia is undergoing the largest intergenerational transfer of wealth in its history, driven by decades of superannuation growth and rising property values, the scale of wealth passing between generations in the coming decades will be unprecedented.

A Responsibility and Opportunity:

Advisers can help clients plan for the future and ensure their wishes are carried out, their families are protected from estate disputes and unnecessary tax, and their wealth, whether given during their lifetime, or passed on – reaches the right people in the right way.

In doing so, advisers create opportunities to build lasting relationships with the next generation of Australians and future-proof their practice for decades to come.

The KeyInvest Investment Bond offers features that have been specifically designed to support these conversations.

This guide explains how they work.

Mature couple talking to financial planner at home

Supporting Your Client's Wishes

Giving While Living

A Living Legacy

The KeyInvest Investment Bond can make a considerable difference to your client’s loved ones during their lifetime.

The Policy Owner retains full access to funds at any time, providing flexibility to give as circumstances allow. The bond can be structured to transfer ownership at a future date, or when a child reaches a nominated age.

Parents and grandparents can set aside capital towards higher education fees, first home ownership, or to provide the next generations with a tax-effective financial head start.

Estate Planning

A Tax-Free, Non-Estate Asset

The KeyInvest Investment Bond becomes a non-estate asset once a beneficiary has been nominated. Proceeds are paid to nominated beneficiaries outside the estate and avoid the delays of probate.

Proceeds are paid tax-free to beneficiaries upon death, regardless of how long the bond has been held at the time of death.

Beneficiaries do not become Policy Owners unless ownership transfer has been separately structured (via KeyPlanner).

Wealth Transfer Features & Benefits

Nominate and Beneficiary

No beneficiary restrictions
Nominate trusts, companies or charities
No requirement for probate

Tax-paid Structure

Taxed internally at a maximum rate of 30%
Tax-paid after 10 years, or upon death
No personal tax reporting

Controlled Wealth Transfer

Set access restrictions upon transfer
Choose vesting dates and conditions
Retain full control until passing

Ownership & Control

Policy Owners retain full control until a transfer event occurs, and can predetermine how and when ownership is transferred

KeyPlanner

KeyPlanner allows a Policy Owner to choose when and how ownership of the KeyInvest Investment Bond transfers to another person or persons.

Advisers can structure the transfer of ownership:

Upon death, or on a future nominated date
With partial or staged ownership transfers
Set withdrawal limits prior to or after transfer

Once a transfer event occurs, the recipient becomes the Policy Owner and gains full amendment rights under the Benefit Fund Rules and product terms.

Child Advancement Option (CAO)

A structured intergenerational transfer that allows ownership to be transferred to a nominated child at a future vesting age.

The bond is established in the name of the Policy Owner who retains full control until vesting.

The vesting date is selected at the outset
The child has no amendment or access rights until vesting
Ownership transfers and becomes the absolute legal property of the child at upon vesting

Note: The nominated child must be under 16 years at the time of application, with the future vesting age set between 10 and 25 years.

Adviser Case Studies

Retiree Estate Planning

High-Net-Worth Couple

Child Advancement Option

72-year-old retiree with adult children

Strategy

$500,000 Invested into a KeyInvest Investment Bond

Adult children nominated as beneficiaries

Outcome

Client passes away six years later:

Bond proceeds are paid tax-free
Paid directly with no estate delays
No beneficiary amendment rights required or available

Beneficiary Options

Only a Policy Owner can amend a KeyInvest Investment Bond.

Beneficiaries, including down-the-line beneficiaries and children nominated under the Child Advancement Option cannot amend a policy until ownership is transferred to them.

Standard Beneficiary

Allows Policy Owners to structure payments across multiple beneficiaries in nominated order
If a nominated beneficiary predeceases the Life Insured, proceeds pass to their children or estate representative
Commonly used to provide clarity and certainty in estate planning, or protect vulnerable beneficiaries

Joint Survivorship

The default option where multiple beneficiaries are nominated
If a nominated beneficiary predeceases the Life Insured, proceeds are redistributed among the surviving beneficiaries
Once KeyInvest is notified of a beneficiary’s death, reallocation is automatic without action required from the Policy Owner

'Down the Line' Nominations

Allows Policy Owners to structure payments across multiple beneficiaries in nominated order
If a nominated beneficiary predeceases the Life Insured, proceeds pass to their children or estate representative
Commonly used to provide clarity and certainty in estate planning, or protect vulnerable beneficiaries

Estate Proceed Comparison
Beneficiary type	Can the recipient amend the policy?
Standard beneficiary payment	NO
Down-the-line beneficiary	NO
KeyPlanner or CAO (pre-transfer)	NO
KeyPlanner or CAO (post-vesting)	YES - beneficiary becomes the Policy Owner

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