EV 1052088405569currentnon-binding advice

CGT - deceased estates

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Will any capital gain or loss you make due to the transfer of the Property to the beneficiaries be disregarded?

2

Yes. Any capital gain or capital loss a legal personal representative makes if an asset passes to a beneficiary in your estate is disregarded. This is in accordance with Law Administration Practice Statement PS LA 2003/12 Capital gains tax treatment of the trustee of a testamentary trust not to recognise any taxing point in relation to assets owned by a deceased person until they cease to be owned by the beneficiaries named in the will. This ruling applies for the following periods : Year ending 30 June 20XX Year ending 30 June 20XX The scheme commenced on: 1 July 20XX

3

The Deceased died in 19XX. At the time of their death, they resided at the Property. They acquired the Property prior to 20 September 1985. The Property was never used to produce assessable income. The Deceased's adult children are the executors of their estate (the Estate). The Deceased's will provided that their children receive the whole of the Deceased's estate in equal shares, following payment of any debts and expenses. Legal title to the Property is held by the Deceased's adult children as executors of the Estate. The executors will transfer the Property to the adult children of the Deceased as beneficiaries.

4

Income Tax Assessment Act 1997 section 128-15(3)