Capital Gains Tax can be confusing and have an impact on your beneficiaries when you die. It can be difficult to understand in what circumstances CGT is payable.

Veteran financial writer Noel Whittaker explains that capital gains tax isn’t payable on your assets when you die. In simple terms, you don’t pay CGT until you or the beneficiary of your estate sells the assets. You are in effect inheriting the obligation to pay CGT. But your beneficiaries pay it when they sell the asset, most commonly shares.

There are rules around property, but in many cases, CGT isn’t payable if you sell the primary residence within two years.

Noel Whittaker suggests you look at your will and consider whether selling your shares and leaving cash to your beneficiaries may be preferable, depending on how you want to leave your estate.

Useful links –

Noel Whittaker website
ATO : Inherited assets and Capital Gains Tax
ATO: CGT and inherited assets
Canstar: Property and CGT
Commbank: Quick Guide to CGT

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