Will my estate or beneficiary be required to pay any tax?

In general, the transfer of an asset under a Will is not a sale, therefore capital gains tax normally should not apply.

However, if your beneficiary decides to sell an asset received under your Will, then capital gains tax may be payable by the beneficiary under the capital gains tax (CGT) rules.

Assets which would ordinarily attract the payment of CGT include but are not limited to investment properties, trust assets, boats, furniture over $10,000.00 in value per piece, and jewellery originally purchased for more than $500.00.

Whereas generally motorcycles and motor vehicles that can carry less than 9 passengers not used for commercial purposes do not attract capital gains tax.

If your beneficiary is a tax advantaged entity or person, for instance, a tax-exempt charity, then capital gains tax may be payable by your estate.

Capital gains tax normally should not be payable in relation to charitable bequests that are donations of cash.

The information in this article is relevant only as at 1 January 2021. For further information, it is recommended that you seek professional financial, accounting and taxation advice.