As with most things in life, things are becoming more & more complex (case in point being Superannuation) and with the divorce rate now at 1 in 2, clients are wanting water tight solutions to ensure their wealth is passed on to the right people without lengthy and expensive estate challenges.
An Imputation Bond may just be the answer.
The Bond’s Nomination feature draws upon various facets and legal mechanisms usually found in basic Wills. As such, leaving bequests by making a Bond Nomination can achieve “Will-like” estate planning outcomes and convey tax-effective and confidential inheritances outside Wills and legal estates.
Advantages of Bond Nominations.
Besides being able to make Tax-Free distributions to Nominated Beneficiaries, the advantages of making a Bond Nomination are:
- The Bond’s Investment Benefits pass as “Non-Estate” assets outside of your Will and legal estate – and without the delay and cost of obtaining probate or administration of your estate; and
- Its maturity proceeds pass directly (and privately) to the Bond’s Nominated Beneficiaries and as such this can avert possible risks of estate claims, including for family provision or in testator’s family maintenance challenges.
Simplifying Complex Wills and Estates.
A Bond Nomination being outside the deceased’s Will and legal estate (and also able to be made in secret) opens strategies to use a Nomination in conjunction with a Will, or as an alternative estate planning arrangement. Using Bond Nominations may be useful for:
- Providing for blended families to financially provide for children of previous relationships, for a new spouse’s children or for estranged children – whilst using a conventional Will to provide for a current spouse and children;
- Solving potential conflicts and inequities between children and grandchildren that might be complex and difficult to handle under a Will; and
- Privately meeting moral obligations to a loyal employee or trusted friend.
Who can be Nominated Beneficiaries?
You can flexibly specify a range of Nominated Beneficiaries covering:
- Individual Persons – with percentage entitlements set by you to divide for your Bond’s future value and with survivorship arrangements or “down-the-line” succession applying between multiple Nominated Beneficiaries; and
- Legal Entities – such as companies and incorporated associations – thus, a Bond Nomination can be used for making charitable bequests.
To find out more about estate planning and for financial advice with your estate plans and wills you can get in contact with our Chan & Naylor Wealth Planning for Australia-wide service. You may also send us an e-mail at email@example.com or contact us through our office number 1300 99 77 34.
Disclaimer: This article contains general information; before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs. Click for more detail regarding this disclaimer.
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