Division 128 of the ITAA 1997 governs what happens to a CGT asset when someone dies. For a property acquired by the deceased on or after 20 September 1985, the beneficiary inherits the deceased's cost base. For a pre-CGT property, the beneficiary is taken to have acquired it at market value on the date of death. In both cases an independent valuation at the date of death is what makes the position provable — and it is the figure the Supreme Court expects in a probate application.
Estate valuations answer to both revenue law and probate practice. The report has to satisfy each.
Estate work reaches us at several stages, and the sooner the better — evidence is easier to assemble while the property is still in the estate.
We treat the date of death as the effective date and build the report around contemporaneous evidence. Where the property has since been cleared, renovated or sold, we reconstruct its condition at that date from records.
We can address the report to the executor, the estate solicitor or the accountant, and send it to all parties at once. It is formatted so it can be attached to a probate application without further work.
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