Funeral Bonds

When someone passes away, the last thing you want to think about is how to meet the cost of the funeral. One way of defraying the expense in advance is through a funeral bond.

As the name suggests, a funeral bond is an investment that provides the sole purpose of covering funeral expenses and is not assessable under the Centrelink Income and Assets tests (provided certain conditions are met).

Basically, the main condition is that the money can only be withdrawn to cover funeral expenses and the total amount deposited cannot be more than the allowable limit, which as of July 1st, 2011 stood at $11,250 (this amount rises in line with CPI pension increase every 1 July).