Fully understanding the reasons for holding Acc or Inc units generally?

bobfredbob

I had never heard about not paying CGT on death.  That applies to spouse inheriting shares too?  I'm guessing this benefit will go before I do.

How would you determine the price on date of death to determine any post-death CGT?

Say a share made 5k profit post-death and prior to final accounts, I assume CGT is due on the 5k profit (but not on the original profit since I originally bought it)?  Or are the shares assumed to be instantly inherited so the post-death 5k profit is now only if the beneficiary sells it themselves?  (Assume one beneficiary).

Assuming the broker can't migrate shares between the deceased and the beneficiary, requiring a sale, how would you recommend re-purchasing?  Would you really just put in a "market buy" order?  Or drip-feed 5k/10k an hour or day to avoid getting a bad price?

I have an "on my death" document of advice so I want to update it with this new information.
Thanks.

masonic

bobfredbob said:

How would you determine the price on date of death to determine any post-death CGT?

You get an official valuation from the investment provider, usually for a fee. This is needed for probate in any case.

bobfredbob said:

Say a share made 5k profit post-death and prior to final accounts, I assume CGT is due on the 5k profit (but not on the original profit since I originally bought it)?  Or are the shares assumed to be instantly inherited so the post-death 5k profit is now only if the beneficiary sells it themselves?  (Assume one beneficiary).

Whomever inherits the shares would be treated as the beneficiary of the post-death gain.

bobfredbob said:

Assuming the broker can't migrate shares between the deceased and the beneficiary, requiring a sale, how would you recommend re-purchasing?  Would you really just put in a "market buy" order?  Or drip-feed 5k/10k an hour or day to avoid getting a bad price?

If they couldn't be transferred to the beneficiary directly for some reason, then the executors would need to sell them and distribute the proceeds. Then it would be up to the beneficiary what to do with the money. Very likely the beneficiary would not choose the same investments if starting again.