Estate Planning

Wills and Taxes

Tax free assets

The following assets are tax free when sold within an estate:

  • Personal use assets, such as a car or furniture.
  • Investment assets purchased before September 1985 if they’re sold in the estate.
  • The personal residence of the deceased if it’s sold within two years of death and was the deceased’s primary place of residence at the time of death. The person may not have lived in their home for up to six years but still qualify for a full exemption as long as they did not claim the exemption on another property. For example, if the person lived in an aged care facility for six months leading up to their death, a full capital gains tax exemption applies.

Different rules apply when the deceased’s primary residence is sold after two years from the date of death.

To learn more about capital gains tax, read the Tax and Structures module.