By Julie Spriggs, Kings Funerals
Since the introduction of changes to Centrelink’s Asset Test on 1 January 2017 the Kings Funerals team has noticed an increase in the numbers of pre-paid funeral bonds being purchased.
More than 300,000 Australians could have been affected by these changes – were you one of them? And did you know that a funeral bond, to the current maximum limit of $13,000, is exempt from Centrelink’s Asset Test?
Here in Victoria there are six different providers of funeral bonds. If these bonds are arranged through a funeral director such as Kings Funerals they can also be linked with a pre-paid funeral contract.
These bonds can be held in individual or joint names and there are no health checks or age restrictions.
When applying for pension benefits, if you have too many “assets”, you may be disadvantaged. For the purposes of the assets test and deeming provisions of both social security and veterans’ entitlements legislation the investment is not deemed an asset so it could help maximise your pension entitlements.
Talking to your financial adviser could be advantageous in working out whether this pertains to you or not.
Don’t forget, if you are not in a position to pay the whole costs quoted, you can opt to spread payments over a number of years.
Think about sitting down with your preferred funeral director to discuss your options soon because although the subject of death can be considered taboo, in reality it is both natural and unavoidable, so plan ahead.
For more information phone Kings Funerals on 5248 3444 or visit kingsfunerals.com.au.