Sun, 25 Mar 2007 01:14:14 GMT

Why you should give your assets to your grandparents.

I’m sure people who are more tax-savvy than me have been thinking about this for a while, but it just occurred to me.

Unlike virtually all OECD countries, Australia has no inheritance tax, and we do not tax realised capital gains at death. Which means that if you have a share portfolio that you know you plan to hold for a decade, and an trustworthy grandmother who you expect to pass away in about a decade, then you should give your share portfolio to your grandmother. When she passes away a decade later, she wills you the portfolio, and you get its full value, without having to pay any capital gains tax.