When someone passes away, both ordinary losses and capital losses come to an end.
Theses losses cannot be transferred to the deceased estate.
However, there is a valuable strategy to consider. It is advisable to utilise these capital losses before death by selling assets that have increased in value, if possible.
By selling these assets and utilising the capital losses, one can offset gains and reduce the tax burden.
Consulting with a financial advisor and tax professional is crucial in navigating these complex matters. Remember, when it comes to tax and estate planning, taking action before it’s too late can make a significant difference.