Capital Gains tax on deferred payment of inheritance

Discussion in 'Estate Planning' started by choppies, 20th Feb, 2014.

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  1. choppies

    choppies New Member

    20th Feb, 2014
    Perth, WA
    here is my situation. When my mother died she left her property to me, my brother, and my sister. The will stated that my stepdad could remain on the property until he died or was unable to care for himself. He lived on the property for about six years up until 18 months ago when he moved to a nursing home. My sister and I have agreed to sell our share of the property to my brother who will live on the property. We are hoping to avoid capital gains tax because it has been less than two years that my stepdad moved out and the property has been uninhabited since then. My brother is going through a divorce and will only be able to get a loan (mortgage) to pay out his ex-wife and my sister. I'm in no hurry for the money and said he can pay me my share when he can afford it. My question is by deferring payment from my brother will I be subject to capital gains tax even though the property will be changing hands within the two year time frame.Any advice would be greatly appreciated.
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Plus Member

    9th Jun, 2006
    Australia wide
    This is complex and you need to seek specific legal advice. It could largely depend on the terms of the will too.