Summary: A guide to selling inherited property in Brisbane, covering capital gains tax exemptions (including the 2-year main residence exemption), managing multiple beneficiaries, probate requirements and property preparation. Includes practical advice on navigating the emotional and financial complexities of selling a deceased estate.
Selling an inherited property brings mixed emotions - grief, nostalgia, and complicated decisions about the family home. If you're facing this challenge, you're not alone. We work with families through this process regularly.
Selling an inherited property has unique considerations you won't face in a typical sale. From capital gains tax considerations to managing multiple beneficiaries and probate requirements - below is a snapshot of the key considerations, however there are some nuances and your solicitor, financial adviser or accountant should be consulted about what the impact is on your circumstances before making any decisions.
Understanding Capital Gains Tax When Selling Inherited Property
Australia abolished inheritance tax in 1979. You won't pay tax for inheriting property. But Capital Gains Tax (CGT) can apply when you sell, and understanding the rules saves thousands.
The Main Residence Exemption for Inherited Property
The most valuable exemption is the main residence exemption. If the property was your loved one's main home and you sell within two years of their death, you may not pay CGT. The conditions for an exemption include: it must have been their principal residence, can't have been rented out, and you must sell within two years.
That deadline can be extended for will disputes, estate complications, or extra preparation time. It’s best to talk to your solicitor if you're approaching the deadline.
When Does CGT Apply?
If the property was an investment or you hold it beyond two years, CGT will likely apply. Properties acquired before September 20, 1985 are generally exempt, though major renovations after that date could trigger CGT. Your conveyancer or tax lawyer will be able to work with you to understand your obligations.
Preparing an Inherited Property for Sale
Once you've decided on selling the inherited property, practical work begins.
Get an Appraisal
Getting an appraisal from the get-go can help everyone have an understanding of the current market conditions, expectations around price, time to sell and any necessary work to make sure the property is compliant and positioned for optimal buyer appeal.
If there are multiple beneficiaries, an independent appraisal can help to align expectations around the final sale price.
Probate and Legal Requirements
Ensure probate is complete or underway before selling. Probate confirms the will's validity and authorises the executor. In Queensland, straightforward estates complete probate in weeks to months.
Your solicitor handles paperwork, but you'll need the original will, death certificate, and property title.
Make the Property Market-Ready
Inherited properties often need work. Start with essentials: clean, declutter, fresh paint in neutral tones, tidy gardens, and minor repairs.
Professional styling works well for higher-value properties. Get a professional appraisal early for correct pricing.
What Happens with Multiple Beneficiaries?
Selling inherited property with multiple beneficiaries can add complexity. Family members may have different ideas about timing, pricing, or whether to sell.
Get everyone around the table early. Discuss timing, pricing, and proceeds. If emotions run high, bring in an estate lawyer to facilitate.
The executor has legal authority to sell, even without unanimous agreement. However, consensus is better - disagreement creates tension and delays.
The Emotional Side of Selling an Inherited Property
Selling an inherited property carries emotional weight. It's normal to feel conflicted.
The two-year exemption window gives you time to process grief and make thoughtful decisions. Don't let sentiment paralyze you - holding onto a property you can't afford or that creates family conflict rarely ends well.
Many families find closure knowing new owners will create their own memories in the home.
We Can Take the Overwhelm Out of Property Preparation
One of the biggest challenges families face is the sheer volume of belongings accumulated over decades. Cupboards full of keepsakes, garages packed with tools and memories, rooms that need sorting through. It's emotionally exhausting and physically overwhelming.
You don't have to do this alone. As part of our service we can arrange charity pickups for furniture and household items, organise services for items that need disposal, coordinate tradespeople for repairs and presentation work, and obtain quotes for any improvements that will add value to the sale.
We'll give you honest guidance on what work is worth doing and what isn't. Not every renovation adds value, and we won't recommend spending money unnecessarily. But when updates will make a difference to buyer appeal, we'll arrange quotes and services promptly.
Common Questions About Selling Inherited Property
Do I need to pay stamp duty when inheriting property? Generally, no. Queensland law exempts property transfers to beneficiaries under a will from stamp duty. However, if one beneficiary buys out another's share, stamp duty may apply.
What about land tax? The estate is responsible for outstanding land tax before transfer. Your executor should obtain a land tax clearance certificate before settlement.
What if there's a mortgage on the property? Outstanding mortgages are paid from sale proceeds before beneficiaries receive their share.
Final Thoughts on Selling Inherited Property
The process doesn't have to be overwhelming. With the right professional support and clear communication, you can navigate the process of selling an inherited property with confidence.
It’s important to get expert advice early when selling inherited property. Reach out for an appraisal, talk to a solicitor about probate requirements and consult an accountant about your CGT position.
If you're facing the sale of an inherited property in Brisbane's western suburbs, we're here to help. Selling inherited property requires a specialised expertise. Probate timelines, multiple decision-makers, family emotions, and the ability to balance patience with momentum. With nearly 60 years of combined experience, we've walked countless families through estate sales. We understand the probate requirements, the family dynamics with multiple beneficiaries, and the emotional weight of selling a loved one's home.
If you would like to book an appraisal, please reach out here.
Disclaimer: This article provides general information only and should not be considered financial or legal advice. Everyone's circumstances are different. Please consult with your solicitor, accountant, or financial advisor for advice specific to your situation.