Winding Up a Deceased Estate
In administering and winding up a deceased estate, a legal personal representative may need to dispose of some or all the assets of the estate. Assets disposed of in this way are subject to the normal rules and any capital gain the legal personal representative makes on the disposal is subject to CGT.
Similarly, it may be necessary for the legal personal representative to acquire an asset – for example, to satisfy a specific legacy made. Any capital gain or capital loss they make when they dispose of that asset to the beneficiary is subject to the normal CGT rules.
If a beneficiary sells an asset they have inherited, the normal CGT rules also apply.
Collectables and personal use assets
A post-CGT collectable or personal-use asset is still treated as such when you receive it as a beneficiary or the legal personal representative of the estate.
Main residence and other dwellings
Special rules apply if the asset was the person’s main residence.
Even if a dwelling was not the deceased person’s main residence, special rules may mean you qualify for a full or part exemption when you dispose of it.
Life and remainder interests
There may be CGT consequences on the creation, surrender, expiry or disposal of a life interest or remainder interest.
A life interest is an interest in the income of a trust for life or an estate for life in real property not held on trust.
A remainder interest is an interest in the capital of a trust or an estate in remainder in real property not held on trust.
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