I'm in NSW and the deceased's Will containing property in NSW is in my favour. But I'm agreeing to split the estate evenly with the executor who is in Queensland. We want to avoid a complex Deed by making an informal agreement. But the executor said her lawyer was worried that the executor's share of the estate might be taxed as a gift. Is this a real concern?
NSW Tax implication of distributing an estate differently to the Will
- Thread starter CliffWalker
- Start date
Why?
Why?
(also, this is probably as dumb as it is impractical, but we lack sufficient facts to be certain)
Maybe.
But I'd be thinking more about things like CGT events, and impacts on assets thresholds and deeming provisions.
In any event, what makes their tax position, your problem?
Those issues are sorted. The only thing we are not clear on is Gift Tax. We just heard that if half of the estate is distributed immediately to them, then it's not subject to Gift Tax, but if it is distributed to us, then to them, then it's subject to Gift Tax. Is that correct? (They are trusted family members, so no need for a deed.)
Heard from whom?
I find it implausible that a lawyer who knows anything about tax would have used the term "Gift Tax"
Heard from whom?
I find it implausible that a lawyer who knows anything about tax would have used the term "Gift Tax"
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