Estate planning approach can be simpler: Australian Unity

Advisers should look to simpler solutions to better meet the estate planning needs of most clients, especially older Australians, according to Australian Unity.

Australian Unity general manager for life and superannuation, Matt Walsh, said in a statement solutions such as investment bonds are a much simpler and better approach to estate planning.

“A major benefit of investment bonds is that they can be taken out in the name of the benefactor with ownership being passed to a child on their death or when the child reaches a nominated age,” Mr Walsh said.

“They also have the benefit that they cannot be overruled by any subsequent challenges to a will.”


Mr Walsh said challenges to wills are a major concern for older Australians.

However, he further added that, once an investment bond is set up, it’s a “fait accompli”.

“In addition to offering a great deal of flexibility in estate planning, it offers tax advantages for the beneficiary,” Mr Walsh said.

“For the child, it’s a very tax effective way to be given capital that they cannot access until they are older, which is accumulating returns without the high rate of tax coming into play on earnings within the bond, or affecting their personal tax when they start work.

“Additional contributions can also be made year by year on behalf of the beneficiary if an ongoing plan is set up.”

Estate planning approach can be simpler: Australian Unity
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