Are testamentary gifts deductible?
Testamentary gifts are gifts made under a deceased person’s will. Generally they are not deductible. The exception being gifts made under the cultural bequests program which was suspended at the end of the 1999-00 income year. When the testator dies, there must be in force a certificate from the Minister for Communications, Information Technology and the Arts which approves the gift and specifies its value. (cont.) As a result of an amendment to the tax laws, from 1 July 2005 testamentary gifts of property of any value made to deductible gift recipients will be exempt from capital gains tax.