28 November 2015
Fifty years ago a couple purchased a house as tenants in common 50%/50%.
Twenty years ago the wife died leaving the husband a life interest in the house, for her half share, residue to the children. This year the husband and executor sold the house.
The husband is now very old and wants to relinquish his life interest so that the children can receive the sale proceeds. The value of the property, since her death 20 years ago, has increased significantly.
Are there any CGT implications for the estate or the children?
See ATO tax ruling 2006/14 from which an analysis of the tax outcomes can be made.
Without knowing the full facts Mentor can only point out the following issues for consideration:
Regards
Mentor
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