Tax considerations when drafting a Will

There are many reasons why it is important to have a Will, none more so that the financial protection it can provide your loved ones after your passing. However, it is often the case that many are unaware when drafting a Will, that their beneficiaries may be subject to pay tax on their assets upon distribution of the estate, which can include capital gains tax (CGT) and superannuation tax. In this article, we look at what tax considerations need to be made so that your loved ones are not left with an unnecessary financial burden after your passing.

Does a beneficiary need to pay inheritance tax?

Generally, a beneficiary will not be required to pay tax on inheritances of cash, shares, property or other gifts. However, if a beneficiary sells or otherwise disposes of an asset received as part of the deceased's estate - for example, property - the asset may be subject toCapital Gains Tax (CGT).