Invest
Estate planning in the post 1 July 2017
Investors spend a lifetime saving and building wealth; however, without an effective estate plan, the death of a spouse or parent can trigger a range of unintended consequences, writes Neil Rogan.
Estate planning in the post 1 July 2017
Investors spend a lifetime saving and building wealth; however, without an effective estate plan, the death of a spouse or parent can trigger a range of unintended consequences, writes Neil Rogan.

An estate plan defines how an investor wants their assets to be managed during their lifetime and how they want them disbursed after death.
Mr Rogan, the general manager of investment bonds at Centuria, explains how the recent changes to super can impact estate planning, and how investment bonds can be used to fill this role.
Four ways super changes impact estate planning
- The transfer balance cap
Under the new regime, only $1.6 million can be transferred into retirement phase accounts. This limits both the amount an individual can have in their superannuation retirement pension account and the amount an individual can receive from a deceased spouse’s pension account. In other words, the deceased’s pension will now count towards the surviving spouse’s transfer balance cap. - Changes to contribution caps
1 July heralded changes that make it harder for investors to build retirement savings through pre-tax and post-tax contributions to super. - Lower income threshold for 30 per cent contributions tax
Australians earning $250,000 or more will pay 30 per cent, double the usual 15 per cent, on super contributions. - No tax-exemption for transition to retirement pensions
Super fund earnings supporting a transition to retirement pension are no longer tax-exempt.
These changes impact investors’ ability to contribute lump sums into super. Finding a wealth creation vehicle that also provides estate protection and planning has become increasingly important.

Five ways investment bonds benefit estate planning
An investment bond is an insurance policy, with a life insured and a beneficiary, but works like a tax-paid managed fund. Importantly for estate planning, an investment bond is a tax effective structure. Like superannuation, tax is paid within the investment bond rather than personally by the investor. The maximum tax paid on the earnings and capital gains within an investment bond is 30 per cent, although franking credits and tax deductions can reduce this.
A key feature of investment bonds is that if the investment is held for 10 years, no personal tax is paid by the investor.
When it comes to estate planning, investment bonds provide five clear benefits to investors:
- Certainty
Investment bonds provide certainty around passing on wealth; an investor can nominate beneficiaries, who then receive benefits directly rather than via the estate. - No caps
While the contribution cap limits superannuation contributions, there’s no limit on the amount to establish an investment bond. Investors can make subsequent investments up to maximum of 125 per cent of the previous year’s contribution without restarting the 10-year period. - Easily transferrable
Ownership can be easily transferred and the original start date is retained for tax purposes. - Beneficiaries
Investors have the freedom to nominate anyone as a beneficiary in the event of their death. Investment bonds fall outside the estate, so are not distributed according to the will, nor are they affected if the owner dies intestate. - Paid tax-free
Investment bonds are paid tax-free to the nominated beneficiary/ies.
After a lifetime building wealth, don’t waste it by failing to plan. Despite the changes to super, tax effective wealth creation strategies exist to enable a comfortable retirement and provide viable estate planning solutions.
Neil Rogan is the general manager of investment bonds at Centuria Investment Bonds.

Investment insights
Global investment giant tips market resilience and rate cuts to continue in 2025
State Street Global Advisors has predicted ongoing interest rate cuts and economic resilience for 2025, with its forecast of a US soft landing expected to materialise. Read more

Investment insights
UK pension funds and insurers plan significant investments in renewable energy
A new survey by AlphaReal reveals that UK pension funds and insurers are looking to increase their investments across a range of renewable energy technologies over the next five years. Read more

Investment insights
Morgan Stanley executive touts benefits of long-term equity investing
Investing in high-quality companies with sustainable returns can lead to strong long-term performance, according to a senior Morgan Stanley executive. Read more

Investment insights
Diversification key to managing political risks in global markets, says deVere CEO
Political uncertainties in Europe, the UK, and the US are driving market dynamics, making diversification crucial for investors, according to Nigel Green, CEO of deVere Group. Read more

Investment insights
Diversify AI investments beyond Nvidia for long-term wealth, says deVere Group CEO
Investors should look beyond AI giants like Nvidia and diversify their investments across the wider AI ecosystem to build long-term wealth, according to Nigel Green, CEO of financial advisory and ...Read more

Investment insights
Disappointment over Apple's AI plans and political uncertainty in France weigh on markets
Investors were left unimpressed by Apple's revelations about its artificial intelligence (AI) plans at the company's Worldwide Developer Conference yesterday. Despite details about a partnership with ...Read more

Investment insights
The future of investment: Trends shaping Australia in 2024
As we look towards 2024, the Australian investment landscape is poised to undergo significant transformations driven by technological advancements, economic shifts, and evolving consumer behaviorsRead more

Investment insights
Market rally faces next test as Nvidia earnings loom amid inflation debate
Equity markets around the world celebrated last week after softer-than-expected US inflation data fueled hopes of interest rate cuts, but questions remain over whether the rally can be sustained as ...Read more

Investment insights
Global investment giant tips market resilience and rate cuts to continue in 2025
State Street Global Advisors has predicted ongoing interest rate cuts and economic resilience for 2025, with its forecast of a US soft landing expected to materialise. Read more

Investment insights
UK pension funds and insurers plan significant investments in renewable energy
A new survey by AlphaReal reveals that UK pension funds and insurers are looking to increase their investments across a range of renewable energy technologies over the next five years. Read more

Investment insights
Morgan Stanley executive touts benefits of long-term equity investing
Investing in high-quality companies with sustainable returns can lead to strong long-term performance, according to a senior Morgan Stanley executive. Read more

Investment insights
Diversification key to managing political risks in global markets, says deVere CEO
Political uncertainties in Europe, the UK, and the US are driving market dynamics, making diversification crucial for investors, according to Nigel Green, CEO of deVere Group. Read more

Investment insights
Diversify AI investments beyond Nvidia for long-term wealth, says deVere Group CEO
Investors should look beyond AI giants like Nvidia and diversify their investments across the wider AI ecosystem to build long-term wealth, according to Nigel Green, CEO of financial advisory and ...Read more

Investment insights
Disappointment over Apple's AI plans and political uncertainty in France weigh on markets
Investors were left unimpressed by Apple's revelations about its artificial intelligence (AI) plans at the company's Worldwide Developer Conference yesterday. Despite details about a partnership with ...Read more

Investment insights
The future of investment: Trends shaping Australia in 2024
As we look towards 2024, the Australian investment landscape is poised to undergo significant transformations driven by technological advancements, economic shifts, and evolving consumer behaviorsRead more

Investment insights
Market rally faces next test as Nvidia earnings loom amid inflation debate
Equity markets around the world celebrated last week after softer-than-expected US inflation data fueled hopes of interest rate cuts, but questions remain over whether the rally can be sustained as ...Read more