My mother has been bequeathed the house she shared with her husband
of 35 plus years. What are the capital gains tax implications?
Q.
My elderly mother has been bequeathed the house she shared with
her husband of 35 plus years. It has been her principal place of
residence during that time. What are the implications of capital
gains tax, and what length of time would she have to live in the
residence? Is any documentation required to be maintained or
completed?
A.
If the house was in joint names, which is probably the case, the
house will pass automatically to your mother and no specific
documentation is needed. Because it was their residence there will
be no capital gains tax implications either. When she dies it will
be deemed to be acquired by her beneficiaries at its market value
at the date of her death.
Each week financial advisor Noel Whittaker answers your
questions.
