When Julie first considered how she wanted to handle her estate, she was overwhelmed by the complexity of wills and the potential for her instructions to be contested. Julie wanted to ensure that her legacy was carried out exactly as she intended, particularly her wish to leave a significant portion of her estate to a charity close to her heart.
She discovered the concept of a bequest, which involves gifting something to someone after death, whether it be a registered charity or another beneficiary. However, Julie learned that even this could be fraught with complications like death taxes and the possibility of her will being contested.
That’s when Julie came across the idea of bequest bonds, and everything changed. A bequest bond provided the certainty and peace of mind she was looking for. Unlike traditional estate processes or wills, bequest bonds are not subject to probate. This means that upon her death, the money in the bond would be promptly paid directly to the nominated charity, without any delays or legal challenges. Knowing that her chosen beneficiary could not be overruled was incredibly reassuring.
"I enjoy seeing my investment grow, knowing it will eventually benefit a charity close to my heart."
Setting up the bond was straightforward for Julie. There were no setup costs involved; she simply applied and made the investment. One of the biggest advantages she discovered was that the bond would be recognised as tax-free upon her death, ensuring that the full amount would go directly to the charity or beneficiary.
Moreover, Julie learned that bequest bonds offered tax management benefits during her lifetime. Since the bond does not make distributions, there was no personal income tax liability to declare. Additionally, if the bond is held for more than ten years, it converts to a tax-free status, further optimising the financial benefits.
Julie was also pleased to find that she could invest the bond into growth assets, allowing her initial investment to grow through compounding income and gains. This meant she didn’t have to wait until her passing to see the impact; she could set up the bequest bond with an initial amount during her lifetime and watch it grow, knowing it would eventually benefit the charity she cared about.
Choosing a bequest bond allowed Julie to secure her legacy in a way that was both financially savvy and emotionally satisfying. It gave her peace of mind, knowing that her wishes would be honoured without the risk of contestation or unnecessary taxes. The process was simple, the benefits were substantial, and she was able to focus on what truly mattered: making a lasting difference through her chosen charity.
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How it works
- Open an investment bond with $50,000
- Nominate your preferred registered charity as the beneficiary
- Select one of the investment options (Sustainable, Growth, High Growth, Balanced)
- Over time the unit price increases with income and gains from the underlying assets of the chosen investment option
- Investment Bond grows to $90,000 after 10 years*
- Upon death, all proceeds are paid to the nominated charity
*example growth rate for illustration purposes only
A Bequest Bond provides certainty
Bequest Bonds provide a simple and secure way to facilitate philanthropy. The safeguarding that a bequest bond offers avoids the shortcomings of Wills and maximises the financial support that could be given to a charity.
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