Ensure any inheritance won’t be taxed when you pass your wealth to loved ones
An investment bond can be a savvy way to manage a lump sum inheritance. Unlike superannuation, there is no cap to your initial investment amount. It is also still taxed favourably (30% taxed within your fund).
Adult children who have been hit with a large inheritance tax bill often like to use investment bonds to ensure they won’t be taxed again when it is their time to pass on a financial legacy. Or, to ensure they are not taxed when they start using the bond as income.