If you have been appointed as an executor or administrator of the estate of a deceased person, you will be responsible for managing the deceased estate’s tax affairs. Some of the tax responsibilities include:
– Lodging prior-year tax returns on behalf of the deceased person
– Lodging a ‘date of death’ (final) personal tax return on behalf of the deceased person
– Preparing and lodging trust tax returns for the deceased estate, if necessary
– Making distributions to beneficiaries and paying tax on behalf of certain beneficiaries.
Is tax payable on death?
There are no death duties in Australia. However, tax may be payable on certain income or capital transactions that occur as a consequence of a person’s death. You need to seek professional advice to determine any tax liability, as individual circumstances are different and unique.
Record Keeping Requirements
If you are managing the taxation affairs of some who has passed, you will need to keep the following records:
– Statements showing any interest income from bank accounts, bonds, term deposits
– Dividend statements for all dividends received from shares
– Rental statements and outgoings receipts for all investment properties owned
– Annual Taxation Statements for any Managed Investment portfolios
– For any Pensions, Annuities or Life Policies, statements from the provider showing any payments made
– Details in relation to the purchase date and cost of all assets owned by the deceased
– For any assets that are sold, documentation showing the sale date and consideration received