CGT consideration essential to estate planning, advisers told

CGT consideration essential to estate planning, advisers told

When making decisions about whether to apply the CGT relief and how to apply it, SMSF practitioners and their clients need to consider the potential tax outcomes upon the death of a member, says the SMSF Academy’s Aaron Dunn.

Mr Dunn says there may be SMSFs with members who are in the retirement phase, where the death of these members triggers the requirement for the fund to adopt a low proportional approach.

“[For example,] you might have two clients with $1.6 million each, and the dad passes away and an asset in the fund is going to be passed down and held for a very long period of time,” he said

“Taking the election [in this instance] may be beneficial because the asset in the fund is likely going to outlast one or more of the members in the fund.”

Mr Dunn said estate planning is, therefore, going to “become very critical” in the process of applying the CGT relief.

CGT consideration essential to estate planning, advisers told
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