Page 60 - Bespoke EPG 2017 Digital
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■■ The heir can elect to accept the asset and the liability for the excess over
50% of that net value, the liability plus interest will have to be paid by the
heir within three years.
Capital gains tax and estate planning
■■ The estate planner needs to evaluate the impact of capital gains tax on his
estate plan.
■■ Capital gains tax may place a burden on the liquidity of an estate.
■■ A carefully structured Will could go a long way in minimising the capital
gains tax effects in the estate itself, as there is no exclusion available to the
deceased estate.
■■ When considering whether to transfer a primary residence out of a legal
entity into an estate planner’s personal name, evaluate the full tax liabilities
for both forms- in many cases, the capital gains tax liability is less than the
combined effect of executors fees and estate duties.
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