My siblings and I are in the final stages of organising our parent’s estate to be split 50/50 between us according to the will. We have signed a family deed of arrangement where we will transfer one property each into our sole names from the estate when we officially distribute the assets. There is a bit of cash that will then be used to equal the split, as one property is worth slightly more than the other. The question is whether we are to consider the values of each property at date of death, and use the valuations we had done for probate for each property when equaling the distribution with the remaining cash, or get a more recent valuation done. One property has increased in value more than the other, so the cash divide will be impacted depending on which way is correct. We were told that if one benefactor receives a greater share than the stated 50/50 in the will and family deed of arrangement, so we want to avoid accidentally triggering CGT implications.
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Can only comment on CGT. For deceased estate property questions you should speak with a deceased estate solicitor.
For CGT purposes the valuation of a property at date of death of deceased is often used. This is the case for the deceased's main residence and for any property purchased pre 20 September 1985.
For property acquired after 20 September 1985 and a dwelling that was not the main residence of the deceased then the cost base for CGT is the deceased's cost base (deceased's acquisition date and cost at that date). See below
Cost base of inherited assets | Australian Taxation Office
Have a look at this link as well and work through the questions to determine any main residence exemption.
Inherited property and CGT | Australian Taxation Office
Transferring assets to beneficiaries is generally not a CGT event, even under a deed of arrangement. Only when those assets are sold (or disposed of), by the beneficiary that inherits it will there be CGT consequences.
How CGT applies to inherited assets | Australian Taxation Office
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