Capital gains tax payable on the sale of specifically devised property by an administrator is a testamentary or administration expense borne by the residuary estate under s 46C of the Probate and Administration Act 1898 (NSW), not by the beneficiaries of the specific devise. Discretionary objects of a family trust have no reasonable expectation of receiving any particular distribution, and accordingly the making of a notional estate order does not interfere with reasonable expectations within the meaning of s 87 of the Succession Act 2006 (NSW). A parent's testamentary bounty should not be expected to cover the consequences of an adult child's divorce or to provide capital sums to enable the applicant's adult children to establish themselves independently.
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