Richard Atkinson

Using an Investment Bond, financial advisers can put in place arrangements that are not only separate from their client’s Will, but can facilitate the Bond’s proceeds passing to intended beneficiaries well after (e.g. many years) the date of the investor’s death.

A Bond can be structured to achieve intergenerational wealth transfers. This can be achieved by using the multiple Life Insured (or Other Lives Insured) feature, which can allow a Bond’s legal ownership to continue after the Bond Owner’s death, in the hands of a trustee, executor or estate administrator.

The Bond’s investment maturity can be matched to specific planning objectives at its intended investment term (e.g. 30 years) for example, to meet a long-dated endowment or an intergenerational wealth transfer.

Alternatively, Investment Bond nominations, like superannuation nominations, can operate to directly distribute investment proceeds (tax-free) upon the investor’s death and bypass the Will and legal estate.

In contrast, a Bond’s nomination is neither subject to trustee discretions, nor does it entail natural person or “dependant” restrictions as to the range of possible beneficiaries. Additionally, once a Bond nomination has been made, it does not have to be periodically refreshed or reconfirmed in future years.

By Richard Atkinson, Head of IFA Product and Relationships

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