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Hi, I have some questions on the above.
Following a death in the family the primary beneficiary of an estate has received a financial legacy resulting from property sale. A CGT declaration has to be made within 60 days to declare any gain from the sale. The primary beneficiary wants to redirect a portion of the legacy to another member of the family (secondary beneficiary) using a deed of variation. How does this work?
1. Is there a single document (deed) to be prepared with the names of primary and secondary beneficiaries?
2. Does the deed have to be prepared immediately, or within a 2 year period?
3. Does the secondary beneficiary also have to make a CGT declaration within 60 days?
4. Will the secondary beneficiary have any CGT liability?
5. Is there any disadvantage to a deed? I understand the alternative is a lifetime gift, but the downside is that this requires the person making the gift to survive for a period of 7 years from the date of the gift.
Apologies if my questions are naive, I have no experience in this!
Following a death in the family the primary beneficiary of an estate has received a financial legacy resulting from property sale. A CGT declaration has to be made within 60 days to declare any gain from the sale. The primary beneficiary wants to redirect a portion of the legacy to another member of the family (secondary beneficiary) using a deed of variation. How does this work?
1. Is there a single document (deed) to be prepared with the names of primary and secondary beneficiaries?
2. Does the deed have to be prepared immediately, or within a 2 year period?
3. Does the secondary beneficiary also have to make a CGT declaration within 60 days?
4. Will the secondary beneficiary have any CGT liability?
5. Is there any disadvantage to a deed? I understand the alternative is a lifetime gift, but the downside is that this requires the person making the gift to survive for a period of 7 years from the date of the gift.
Apologies if my questions are naive, I have no experience in this!
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