Your estate is not obliged at all, to sell your shares, they could be distributed to the beneficiaries. Or sold. If they do that It will be taxed like a pseudo death duty.
You’re dancing around this, moving the subject from yourself and your decisions, to beneficiaries but either way the intent is clear in law, either you have no intent to sell ever, ergo enjoy the capital gains and the taxable income, or you do not. It’s not grey, it’s black and white.
Test it if you don’t believe me. Take your position to the IRD and ask ‘did I read this correctly’, yeah right!
Some say don’t fight the Fed. I say sure, but don’t fight the IRD either. They have an extraordinarily long memory. Squeaky clean with no ambiguity makes it easier to sleep at night. Get a big five accountant to help sort out what Is taxable and what isn’t. Selling to buy a shed, well let’s see how that stands up to scrutiny.
Likewise all you other ‘investors’ who on a whim decide to reap your capital gains. The IRD can make life miserable and even more so for those who are later in life and cut a few corners along the way.
Bless