I understand the complexities of tax paid by beneficiary dependent on taxable and non taxable components of the fund. But- Are capital gains payable by beneficiaries (adult children) if they sell equities they inherit from a SMSF?
Is there a difference if the SMSF is in pension or accumulation mode?
A: Capital gains tax will potentially accrue on any asset transferred, unless it is an exempt asset. In this case, your adult children would potentially pay capital gains tax on the shares if they subsequently sold them, with their cost base being the market value of those shares when they inherited them from you.
Whether your fund was in pension or accumulation mode won’t have any impact on their CGT liability.
