The smart choice for tax effective investing.
Education bonds are unique from other forms of investment as they offer a variety of tax benefits which can make them a great choice for tax effective investing. Let’s take a look at what makes Futurity Education Bonds effective in tax planning for individuals and families, and why they’re a popular option for saving to fund education costs.
A FLEXIBLE & UNIQUE SOLUTION TO MEET LIFE’S IMPORTANT MILESTONES
Futurity leads the way in helping cover education expenses at every stage of life. As a long-term growth investment, Futurity Education Bonds offer flexibility and control to save and tax-effectively invest for education needs – they can also be tailored for individuals or across multiple generations and other life-events.
No personal taxable income or CGT
- As a non-distributing investment and while accumulating year on year, the investment growth doesn’t add to the Bond Owner’s personal taxable income. Education Bonds don’t involve any CGT implications for the Bond Owner or the Education Beneficiaries.
- Education Bonds can be transferred to anyone or entity with immediate effect or as a Future Activated Transfer without personal tax or CGT.
Secure and confidential wealth transfer arrangements
The Bond's ‘Will-like’ estate planning features enable tax-effective distribution to Bond Estate Nominees without the cost and complication (and potential legal challenges) of Wills and estates.
Set up education provisioning and wealth transfers to anyone without paying tax, including an auto transfer feature pre or post death.
Our Bond Guardian feature ensures wishes are carried out in the event of death and physical or mental incapacity.
Avenues for tax-free access
- Withdrawals from capital for any purpose are tax-free at any time.
- Withdrawals made for education purposes from the earnings component of the Bond are tax-free if planned correctly.
- When withdrawing to pay for an education expense, the Bond Owner can choose how much is withdrawn from capital and how much from earnings.
- Withdrawals from earnings for education purposes are assessable in the hands of the Nominated Beneficiary.
Unique Education Tax Benefit
- When a withdrawal is made for the purpose of funding education costs, the Education Tax Benefit amounts to an additional $30 for every $70 withdrawn from investment earnings.
Understand the tax benefits of Education Bonds