inheriting shares

[Tizzy]

I think I'm in the wrong forum section, please feel free to move me mods

I will inherit some shares soon and I have no idea about the processes of probate. They are ANZ, Woolworths and Westpac shares. Will I need to pay to pay CGT if they are sold by me? Do you know how I get them into my name? Would I pay anything to transfer them into my name?

I'm sure I'll get the information eventually from the executor but just curious and want to know now if possible.

 

[csc]

call computershare, they should be able to offer assistance;

Perth:

Phone
+61 (0)8 9445 7000

Fax
+61 (0)8 9445 7677

Postal and Street Address
31 Howe St
Osborne Park Western Australia 6017

 

[csc]

http://www-au.computershare.com

no idea about any tax implications however...usually only an issue when you actually sell at profit..........

may pay for you to get some quality advice ie: pay for it rather than online advice especially if there is a high dollar value in holdings at stake...

if it all becomes too much for you ill be happy to have them transferred into my name of course!

cheers

 

[Ausprop]

death is not a CGT trigger - you selling them will be tho

 

[bene313]

If the shares are post-CGT you inherit the the original acquisition details (cost base and time of acquisition).

If the shares are pre-CGT you inherit a cost base which is market value at time of inheritance.

No CGT to pay in either circumstance. What you would like to find out is the original acquisition details (cost amount and date of acquisition) as you will need this if you ever dispose of the shares.

 

[Rob G.]

If the shares are post-CGT you inherit the the original acquisition details (cost base and time of acquisition).

If the shares are pre-CGT you inherit a cost base which is market value at time of inheritance.

No CGT to pay in either circumstance. What you would like to find out is the original acquisition details (cost amount and date of acquisition) as you will need this if you ever dispose of the shares.

Assuming you are to hold them as a resident individual ...

Also generally the executor disregards any capital gains/losses on transfer (not sale) to a beneficiary of the estate.

Cheers,

Rob

 

[Tizzy]

Thank you so much everyone ! Thanks for the links CSC. Much appreciated.

I'm not really sure how long they were held. There may have been some swapping around between different shares a few years ago, so probably after CGT was introduced I'm guessing??

Maybe the moral is I have to keep them. They just make me look so straight and ....sensible!!


Rob, what is a resident individual? Do you mean they could also transfer into a trust?

I definately need to go and find a financial planner. It might be nice to secure them for our kids . These shares are coming from someone who was very risk averse and his method served him just fine. I think I'd be happy enough just letting them grow.

 

[coastymike]

Discuss the advantages of a capital vested trust with your advisors.

 

[Belu]

Tizzy depending on the amount it may be best to talk to your accountant about this.

Also CGT was introduced in 1987 (someone correct me if i am off a couple of years?) so if they were traded a few years ago then yes, i would say they are post CGT implementation

 

[Tizzy]

I have the same accountant as the testator Belu, so that part will be relatively easy.
Thanks Mike, I will look into the capital vested trust. Probably the accountant will know about that.

 

[TheDoctor]

Tizzy depending on the amount it may be best to talk to your accountant about this.

Also CGT was introduced in 1987 (someone correct me if i am off a couple of years?) so if they were traded a few years ago then yes, i would say they are post CGT implementation

September 1985 Talking to your accountant though Tizzy, would be the best course of action. This can get complicated if they're a lot of shares as depending on when they were originally purchased, different decisions can be made which will effect you when/if you eventually sell them.

If the shares are post-CGT you inherit the the original acquisition details (cost base and time of acquisition).

This bit here for most intents and purposes is correct. However, the technical treatment for post-CGT shares is that your costbase will be same however date of acquisition will be the date of death. However, if you sell those shares within 12months of that date but the deceased would've been able to claim the 50% discount you are too.

What difference does this actually make? In truth, not much. The main difference arises in the following situation. If the shares had been purchased before 1999 but the person died after 1999, you (as the inheritor) can only utilise the 50% discount method and not the indexation method.


P.S. I hope all that makes sense, I've had a few drinks tonight.

 

[Tizzy]

I thought I replied to your post the other night Doc, but it isn't here!! Maybe I had too much wine also!

I have only found out that they are shares that were purchased a number of years ago. Apart from that, I don't know anything more yet. Thanks for your explanation. I'm pretty sure I will not be selling the shares now anyway, hopefully just use them like equity and leave them for our children.