Australia does not have inheritance taxes, but you, or the beneficiaries of your loved one’s estate may be liable for paying capital gains tax (CGT) when a property or asset you inherited from the estate is later sold.
Capital Gains Tax liabilities and exemptions can vary, for example in the case of a property, according to how long your loved one owned it, or lived there, and whether or not it generated an income.
There are also rules – and exemptions – when it comes to dependants and beneficiaries paying taxes on other inheritances from a loved one’s estate. This includes their superannuation, which if it was not tax-free, may or may not have already paid the taxable component. Your age may also be taken into consideration, as well as whether you receive the ‘super death benefit’ payment as a lump sum or an income stream.
You may have to pay tax on an inheritance if it generates money, such as a property that brings in rent. Incomes generated from assets left in wills are assessed for tax payments.
The amount of taxes due to the Australian Taxation Office is assessed from the tax year you became entitled to the bequest, even if you did not receive your inheritance until the following tax year.
Need an Estate Planning Lawyer?
We understand you’ve got a lot to deal with right now – especially if you’re responsible for managing the affairs of your loved one.
When the funeral is over, you may need to apply for the right to deal with your loved one’s estate: their property, money and possessions. Let us help.
We can connect you with probate and estate planning experts to help you organise your estate and create the legal documents to protect you and your loved ones should you fall ill or pass away unexpectedly.
eziFunerals supports individuals and families cope with end of life decisions, death and funerals. We are an independent, Australian-owned and operated company. We are not part of any other funeral company.
Our member Funeral Directors operate in Sydney, Melbourne, Brisbane, Perth, Adelaide and Australia wide. Thet are chosen for their knowledge, quality, service, personalisation and experience. They go above and beyond, and will take the time to support the family.
For more information or to make contact with a trusted Independent funeral director, call eziFunerals on 1300 236 402 or visit www.ezifunerals.com.au.