I have $200,000 in a term deposit for my five grandchildren, accumulated from inheritance and other sources over the years. Their ages are 26, 24, 22, and two are 21. I do not wish to give the funds to them yet and want more details about insurance bonds. If I held a bond in my name and planned to distribute it to my grandchildren in five years or upon my death, would this bond be considered a deprived asset for pension purposes? How would the interest accruing impact my tax or that of my grandchildren if I had separate bonds for each of them?

This is an unusual question because insurance bonds are normally used by grandparents to invest for younger grandchildren to avoid the........

© The Sydney Morning Herald