If you are appointed as the executor of an estate, you have a number of duties cast upon you.
- maximising the size of the estate for the beneficiaries; and
- preparing any necessary tax return or obtaining Income Tax Clearances.
Estate administration involves a range of financial considerations which can be affected by the number and type of assets within the estate.
The assets might typically include land held by the deceased or the deceased’s own residence.
I am sure you will agree the Sunshine Coast is certainly undergoing a phase of urban renewal – with many houses being knocked down and replaced by new units or townhouses as part of a development scheme.
Before you put your “Developer” hat on and demolish the deceased’s home, you might want to make sure you are not bulldozing the main residence CGT exemption as well !!
Knocking down the deceased’s home (or even the subdivision of land) can have significant tax implications for the estate and the beneficiaries.
It is important that you obtain the correct accounting and legal advice before acting to ensure you don’t inadvertently destroy any tax exemption that might be available to the estate.