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Financial Planning – Inheritance Tax Implications

Thursday , 24, February 2022 Comments Off on Financial Planning – Inheritance Tax Implications

The majority of us prefer to avoid thinking about the loss of loved ones. As with paying taxes the death of a loved one is inevitable. What happens if you're the beneficiary of the estate of a deceased person?  You can search online for the right guidance about how to avoid inheritance tax with a trust.

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A dear friend has died. What should you do?

An executor is a person who is tasked with acquiring the estate of the deceased as well as paying their debts and then distributing the remaining funds among their beneficiaries. If they had an estate plan, the person is named by the wishes of the deceased. If they died without a will (known as "intestate") then an Executor has been appointed by the state.

What is the tax impact of inheriting the inheritance?

If you inherit a property and later decide to sell it, you may be subject to Capital Gains Tax (CGT). One of your goals as a beneficiary would be to reduce or avoid the tax.

The home of the family The house in the family is not subject to taxation under CGT. The same is true for inheriting the home of your family, provided that you sell it within 2 years. If you do not sell it within this timeframe you will be assessed on the value increase in the time since your death, at the time of the sale.