Deceased Estates Offer Advantages


Why not make use of your own tax-free threshold of $18,200pa and a spare $18,200pa from a deceased estate?

A deceased estate can make use of the tax-free threshold of $18,200pa of tax-free income for a three- year period if not more, depending on circumstances. Taking this path allows time to sort out loved ones, the estate and manage the instructions of the Will providing all is in order.

Joint bank accounts pass to the survivor as do jointly held shares or rental property. Upon the loss of a partner/spouse when this occurs the level of income and tax liability of the survivor is likely to double. The assets of the survivor are now also much greater or could be doubled as is any future capital gains tax. This situation could be greatly improved and better provide for the position of you and your partner/spouse now and for the future.

Proper structuring of asset ownership and a Will can provide the best solution.

Holding equal amounts of assets in individual names (or trusts) can offer improved tax benefit and flexibility over a jointly held asset and even greater benefits once one partner/spouse passes on. The flexibility provided enables a partner to sell part of their shares for example at a profit without causing the other partner to pay capital gains tax at the same time. Separately held assets allows independence in the partnership to match the taxable situation of the most suited person should funds need to be liquidated. A properly drafted ownership strategy and WILL can offer significant benefits to a couple or partnership and family of a single person for the long term.