Death and Taxes: Wills and Asset Distribution
In This Chapter
Working out your will
Taxing death benefit distributions
Figuring out how to share your pension
Taxing assets distributed to beneficiaries
A n old saying states that there are two certain things in life: death and taxes. Although you can’t predict with certainty your death, you can at least reduce the impact of taxation when you die.
In this chapter, I explain how death benefits are taxed when they’re paid to your dependants and non-dependants, and how the capital gains tax (CGT) provisions apply to certain assets that you plan to distribute to your beneficiaries after you die.
Preparing a Will
A will is a legal document that sets out your instructions for the distribution of your assets and personal belongings when you die. When you set up a will, you need to choose an executor to administer the will in accordance with your instructions. Because your personal circumstances can quickly change (for example, marriage, divorce, birth of a child, death of a family member or retirement), it’s a good idea to regularly ...