Estate Planning
Wills and Taxes
Tax on estate income
The estate pays taxes on the income it earns, which may include interest, dividends, rent or capital gains. Capital gains are calculated in the same way as for an individual (see the Tax and Structures module for more information).
The executor of the estate can decide whether to sell these assets within the estate and then distribute cash to the beneficiaries or distribute the assets directly to the beneficiaries, provided the Will allows the assets to be passed directly to the beneficiaries.
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