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Jan Mohammed

Feb 10, 2023

CGT due to death of a member

in SMSF Technical Forum

I have a SMSF where there were 2 individual trustees both in their late 80s. The husband passed away on 8 July 2021 and the funds have gone to the surviving spouse. Her pension balance is $1.8m and her accumulation balance is $4m.

The brokers have frozen the shares requesting that the shares need to be transferred to the surviving member's name only as the trustees have changed. Shares are held in the name Member 1 & Member 2 as Trustee for The SMSF.

1. Are there any CGT implications if the name on the shares are changed to her name only. I would have though there would be CGT rollover provisions of some sort in a case like this?

2. Is it right of the broker to freeze the account and request a name change?

3. Does there now need to be a corporate trustee set up as there is now only one member.