EV 1052196412907currentnon-binding advice

CGT - deceased estate

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

Is any capital gain or loss you make due to the transfer of the property to a beneficiary disregarded?

2

Yes. Division 128 of the Income Tax Assessment Act 1997 (ITAA 1997) deals with capital gains tax (CGT) consequences that arise from a deceased estate. Any capital gain or loss made by a trustee of a deceased estate or legal personal representative (LPR) is disregarded under section 128-15 of the ITAA 1997 if an asset of the estate 'passes' to a beneficiary in accordance with section 128-20. This ruling applies for the following period : Year ending XX/MM/CCYY The scheme commences on: XX/MM/CCYY

3

The deceased died on XX/MM/CCYY. The deceased left a will which noted that the property at a place (Certificate of Title Vol XXXX Folio XXX) be held on trust for a beneficiary for and during their lifetime, and on their death for remainderman 1 and remainderman 2 as tenants in common in equal shares. The trust was created by the will of the deceased. Probate of the will was granted to the executors and trustees on XX/MM/CCYY. A drafted deed of family arrangement between a beneficiary (life tenant) and remaindermen, as executors and trustees of the will, proposes to terminate the trust created by the will and undertake a transfer of the property to the life tenant. You will transfer the property to the life tenant in accordance with the deed of family arrangement.

4

Income Tax Assessment Act 1997 Division 128 Income Tax Assessment Act 1997 section 128-15 Income Tax Assessment Act 1997 section 128-20