Sovereign Advisors welcomes Michael Blake, Head of Centuria Life, to discuss how investment bonds are emerging as a key strategy for intergenerational wealth transfer and estate planning. With superannuation balances growing and property values at record levels, many Australians now face the challenge of distributing wealth effectively across three generations. Blake explains that while traditional wills and trust structures can be complex or contestable, investment bonds provide a straightforward alternative — allowing assets to be directed to chosen beneficiaries outside probate, ensuring privacy and certainty.
The conversation also explores how investment bonds complement superannuation and property by offering both tax efficiency and liquidity. Taxed internally at up to 30% (often closer to 20% after franking credits), they allow investors to compound returns more effectively and access funds when needed, without waiting for preservation age. For clients seeking flexibility, simplicity, and a tax-paid income stream in retirement, investment bonds represent a practical structure — bridging the gap between accumulating wealth and passing it on securely to future generations.
