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Snapshot

  • Death is not necessarily tax-free.
  • Accrued capital gains can affect property values.
  • Always consult with clients’ accountants when making their will.

Peter and Patricia have instructed you to prepare their wills. Peter and Patricia own where they live and also two commercial properties, each worth about $3 million and subject to a mortgage of $2.5 million. They have a share portfolio, which they started to acquire during the 1990s, valued at about $6 million. They also have a self-managed superannuation fund with a relatively small balance but with a policy on Peter’s life for $2.5 million – to pay off the debt.

Peter and Patricia have three children – Michael, Bruce and Rachel. The boys live in Australia but Rachel has lived in the UK for many years. Family harmony is pretty good.

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