Published on 13 Nov 12
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
Administering a deceased estate can be an emotionally draining and challenging experience for all parties involved. At such a difficult time, tax is generally the last thing on the mind of friends and relatives of the deceased. However, dealing with a deceased estate can often present unique and complex tax issues which need to be promptly addressed.
This paper provides some clear guidance on the tax treatment of deceased estates and how to make the estate administration process a little easier for those involved. In particular, it covers:
- What is a deceased estate?
- From a tax perspective, what are the stages of administration of an estate?
- Who gets taxed on the income of the estate and when will the ‘3 year rule’ apply?
- What are the tax implications for assets acquired through a deceased estate?
- Tax traps that can arise when administering an estate and how to manage them
- Tips on how to improve the tax outcomes of a deceased estate.
Brian is the Principal and Legal Practitioner Director of WillWorks® Pty Ltd, a boutique law practice specialising in providing Sophisticated Estate Planning and Trust Deed services, including Review of Family Trust Deeds. Brian is a specialist Trusts and Estate Planning Lawyer with over 25 years' experience in advising on Income Tax, Capital Gains Tax, Trusts and Asset Protection, and preparing Sophisticated Wills, Testamentary Trusts, Discretionary Trusts, Unit Trusts, Hybrid Trusts, Family Trust Succession Deeds, SMSF Deeds, Shareholder Agreements and Business Succession Agreements. Before establishing WillWorks®, Brian was a Partner with a "Top Tier" professional services firm and was a founder of its Private Clients Estate Planning practice in Australia."
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14 June 2012