Hi everyone,
I am in the process of updating my will. Always an emotive type of issue but a necessary process to ensure that in the event of unfortunate circumstances assets are transfered correctly to your nearest and dearest.
Anyway, I am unsure if the draft of the will I have is exactly what I need in my circumstances. I went to my solicitor yesterday and came away with more questions than he seemed to be able to answer - not a good sign.
I had thought (mistakenly so as it turns out) that my will had been set up as a Testamentary will trust. My main concern at this stage is to ensure that our assets (real estate) will pass to our daughter without capital gains tax/stamp duty being triggered in the process and be held on trust for her until she reaches a certain age. My solicitor assures me that the wording of the will as it now stands means that the assets will be held upon trust for her - and therefore there will be no duties (or capital gains tax ) payable by the estate unless the assets are sold. I understand that if the assets are sold, then capital gains tax will be payable.
The relevant section of the will reads:
"In the event that my said wife should predecease me then I give devise and bequeath the whole of my estate both real and personal to my said Trustees UPON TRUST to sell call in collect and convert the same into money and out of the proceeds of such sale calling in collection and conversion TO PAY all my just debts funeral and testamentary expenses Probabe and Federal estate duties (if any) and subject to payment thereof TO HOLD the rest residue and remainder of my estate UPON TRUST for my daughter .....insert name etc for her sole use and benefit absolutely."
Is anyone able to confirm that there would be no capital gains tax paid on the transfer of real estate to the estate as the wording now stands before I seek a second legal opinion?
Your thoughts will be greatly appreciated.
Regards Jason.
I am in the process of updating my will. Always an emotive type of issue but a necessary process to ensure that in the event of unfortunate circumstances assets are transfered correctly to your nearest and dearest.
Anyway, I am unsure if the draft of the will I have is exactly what I need in my circumstances. I went to my solicitor yesterday and came away with more questions than he seemed to be able to answer - not a good sign.
I had thought (mistakenly so as it turns out) that my will had been set up as a Testamentary will trust. My main concern at this stage is to ensure that our assets (real estate) will pass to our daughter without capital gains tax/stamp duty being triggered in the process and be held on trust for her until she reaches a certain age. My solicitor assures me that the wording of the will as it now stands means that the assets will be held upon trust for her - and therefore there will be no duties (or capital gains tax ) payable by the estate unless the assets are sold. I understand that if the assets are sold, then capital gains tax will be payable.
The relevant section of the will reads:
"In the event that my said wife should predecease me then I give devise and bequeath the whole of my estate both real and personal to my said Trustees UPON TRUST to sell call in collect and convert the same into money and out of the proceeds of such sale calling in collection and conversion TO PAY all my just debts funeral and testamentary expenses Probabe and Federal estate duties (if any) and subject to payment thereof TO HOLD the rest residue and remainder of my estate UPON TRUST for my daughter .....insert name etc for her sole use and benefit absolutely."
Is anyone able to confirm that there would be no capital gains tax paid on the transfer of real estate to the estate as the wording now stands before I seek a second legal opinion?
Your thoughts will be greatly appreciated.
Regards Jason.