Managing the tax affairs of someone who has died

Introduction

This guide will help you finalise the tax affairs of a deceased person. It tells you what tax returns you may need to lodge and how the tax liability will be worked out.

General law

The law that applies to the assets and income of a deceased person depends on which state or territory of Australia the deceased person lived in when they died.

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, as well as:

• carrying out (executing) the terms of the deceased person's will
• complying with the relevant inheritance laws where there is no will.

You can find more information about the inheritance laws that apply in your state or territory by contacting the Public Trustee Office.

Wherever the word 'executor' is used in this document, it applies equally to a trustee, administrator or legal personal representative.

Tax law

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.

The tax consequences are different from the perspective of:

• the deceased person
• the executor
• a beneficiary of the deceased estate.

Sections within Introduction

• What is a deceased estate?
• What does an executor do?
• What forms part of a deceased estate?
• What is a will?