You probably already know that both income and assets tests are used to determine your Age Pension entitlements. But have you heard how a funeral bond can reduce your assessable assets under the aged pension assets test?
A funeral bond is deemed an exempt investment, provided the sum does not exceed the Funeral Bond Allowable Limit, and it allows you to reduce your assessable assets which may help in increasing your Centrelink pension entitlements (if you are already not receiving the full pension). Currently, the Funeral Bond Allowable limit is $14,000* (indexed on the 1st July annually).
A funeral bond is a tax effective way to save in advance for the cost of a funeral, setting aside funds to protect your loved ones when the time comes.
* More information can be found at the Services Australia website.