Managing wealth transfer in a blended family

1. In terms of estate planning, education bonds enable:

A) addition of a bond guardian

B) assets to be held outside an estate

C) appointment of up to 10 beneficiaries

D) All of the above

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2. If a person for whom the adult tax rate applies, withdraws $18,200 as an education benefit claim from an education bond's earnings, the bond balance would reduce by:

$12,800

$18,200

$12,740

$5,400

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3. Education bonds have the capacity:

A) for tax-free distributions to education beneficiaries

B) to protect a child's inheritance when a parent remarries

C) for minors to use the more favourable adult tax-free threshold

D) All of the above

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4. Contributions into an education bond are taxed at 15%.

A) True

B) False

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5. Education bonds can be transferred to a company.

A) True

B) False

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