Since the introduction of changes to Centrelink’s asset test on 1 January 2017, Kings Funerals has noticed an increase in the numbers of pre-paid funeral bonds purchased.
Kings’ Julie Spriggs said it was envisaged that over 300,000 Australians would have been affected by these changes.
“Some people don’t know that funeral bonds, to the current maximum limit of $12,750, are exempt from Centrelink’s asset test,” she said.
“Victoria has six different providers of funeral bonds. If bonds are arranged through a funeral director,they can also be linked with a pre-paid funeral contract.”
The bonds can be held in individual or joint names and health checks or age restrictions do not apply, Ms Spriggs said.
“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.”
More information is available by phoning Kings Funerals on 5248 3444 or visiting kingsfunerals.com.au.
