Generally, if someone dies and they have investments and assets such as shares, there is no deemed disposal of those investments or assets. However, if they pass them to the beneficiary of the estate, then the tax profile of those investments will be inherited by the beneficiary.
While it may not always be possible to avoid these de facto death taxes, it may be possible to reduce or defer them depending on how you plan your estate.
The use of trusts - including a discretionary trust such as a testamentary trust or a family trust - is one way to ensure that your assets are left according to your wishes and with minimal tax consequences.
According to Mark Robinson, estate planning lawyer with Anderssen Lawyers, with careful planning it is possible to maximise the benefits to your loved ones.
"It is not about avoiding paying tax but minimising or deferring any unexpected tax liabilities," he says.
To find out more, click here: http://www.moneymanager.com.au/articles/2009/04/04/1238261849814.html |
