Private ruling: CGT - deceased estate
Date of advice: 2 June 2026
Published: 17 August 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Do the properties transfer to the beneficiary by the legal personal representative (LPR) of the Estate under paragraph 128-20(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Based on the information provided to the Commissioner the properties will transfer from the LPR to the beneficiaries under the will. The properties will be transferred by Individual Z to the beneficiaries of the deceased's estate. They will transfer pursuant to subsection 128-20(1) of the ITAA 1997 from the LPR to the beneficiaries.

Relevant facts and circumstances: The Deceased was a non-resident for tax purposes. The Deceased passed away a couple of years ago. The Deceased owned properties in Australia. The deceased had a joint Will with their spouse written under Country Z law. Individual Z (the 'Trustee') was appointed Administrator of the Deceased's assets and will therefore be for tax purposes the Trustee of the Deceased Estate. The joint Will outlines the distribution of assets in the event of the passing of either spouse. • In the first instance, the surviving spouse inherits the assets of the deceased. • The children of the couple are named as alternate heirs in equal measure, if the surviving spouse also passes away. The joint Will also states that each of the children are to receive a legacy from the Estate of the Deceased. The object of this legacy is to be determined by the surviving spouse. Individual Z will transfer properties to each of the deceased's surviving children. Under Country Z law, this will be a legacy pursuant to Country Z legislation. You have obtained legal advice confirming that the Will does not breach the general rule against the delegation of testamentary powers because it satisfies the exception to the rule provided legislation.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 128-20