I have four children and want my assets (home, investment house, managed funds) to be equally divided on my death. I also have an investment property purchased in 1993 for $275,000, now worth $1.6 million. It had been rented out until 12 months ago when my widowed daughter and her children – who were previously living there at market rent – began to reside there rent-free. Because of their situation, it will remain that way. I wish them to have the property when I die. In terms of CGT, would it be better to leave the property to her in my will, or transfer to her name now? I am trying to minimise CGT as she is not very affluent.

If it’s transferred to her before your death, you will be liable for capital gains tax which would be substantial given the large gain. However, if you leave the property to her in your will no CGT will be triggered on your death and will only be payable if and when she sells the property.

A simple mistake could send tens of thousands of dollars to the taxman.Credit: Simon Letch

If she continues living in the property for many years the capital gain will increase but the proportion that will be taxable reduces pro rata as time goes by. Once it is in her name, she can cover it with her main residence exemption.

She will also be able to increase her cost base by any holding costs not claimed as a tax deduction by you or her. This includes interest, rates, insurance, repairs and maintenance, even cleaning materials.

You need to consider whether it is worth paying the CGT and stamp duty now to transfer it into her name, weighing up covering it with her main residence exemption against the probability of her choosing not to sell the home in her lifetime so the CGT will disappear.

I am 72, still working and have $550,000 in super, almost all of it in a pension account from which I receive the minimum mandatory withdrawal amount. The ATO site states that I am not eligible to carry forward the unused concessional contributions cap because my total super balance exceeds $500,000. If I were to reduce the total balance to below $500,000 by taking a lump sum withdrawal would that make me eligible for the carry-forward arrangement? I’m looking to generate contributions to reduce a capital gains tax liability.