VETERANS' ENTITLEMENTS ACT 1986 - SECT 5PC Exempt funeral investments

VETERANS' ENTITLEMENTS ACT 1986 - SECT 5PC

  (1)   Work out whether a funeral investment that relates to a particular funeral is an exempt funeral investment by applying these rules:

  (a)   the expenses for the funeral must not be prepaid; and

  (b)   in relation to that funeral:

  (i)   only one investment of not more than $10,000 can be an exempt funeral investment; or

  (ii)   only two investments that combined are not more than $10,000 can be exempt funeral investments.

Note:   The amounts in paragraph   (1)(b) are indexed each year on 1   July (see Division   18 of Part   IIIB).

  (2)   Disregard any return on an investment in determining the amount of an investment for the purposes of this section.

  (3)   For the purposes of subsection   (1), a funeral investment means an investment, being an investment that cannot be realised before maturity and the return on which is not payable before maturity, that:

  (a)   matures on the death of whichever member of a couple dies first or dies last and is to be applied on maturity to the expenses of the funeral of that member of the couple; or

  (b)   matures on the death of:

  (i)   the investor; or

  (ii)   if the investor is a member of a couple at the time the investment is made, the investor's partner at that time;

    and is to be applied on maturity to the expenses of the funeral of the person on whose death it matures.