How to plan inheritance fairly where children live abroad
What happened
Tax on capital gains The tax implications of inheriting an asset depend on whether it was acquired by the deceased before or after the introduction of CGT on September 20, 1985. This triggers what’s known as CGT event K3 and failing to pre-empt it can have serious ramifications for all beneficiaries – not just those who live overseas. This matters for Professional Services & HR because contracting activity changes leverage, market appetite, and which clauses buyers can credibly trade with 20, 1985, 2,000,000 as the clearest commercial anchors; Rate caps is now more valuable
Buyer takeaway
For Professional Services & HR, the buyer read-through is commercial leverage: scope, validity windows, reopeners, and term structure may now matter as much as headline pricing
Cost / money
The money issue may come through term structure rather than base price alone, especially if suppliers push for escalation language, shorter validity, or broader pass-through
Supplier / commercial
This is primarily a contracting story: revisit scope boundaries, extension mechanics, and which party carries volatility before those assumptions harden in a live tender
Safety / operations
The main operations question is whether the contract still matches field reality. If scope, response times, or liabilities are vague, the risk usually shows up during execution
What to watch
Watch scope creep, liability pushback, and term changes that move volatility back onto the buyer even if the base rate looks manageable
Key facts
- Tax on capital gains The tax implications of inheriting an asset depend on whether it was acq
- This triggers what’s known as CGT event K3 and failing to pre-empt it can have serious ramifi
- Consider Jenny, whose estate is worth $2,000,000, which includes $1,000,000 in unrealised cap
- Unless Jenny includes specific directions on how tax arising from the distribution of the Wil
