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  • Completing items in the trust tax return

    When preparing the Trust tax return for the deceased estate as the executor, show the name of the trust as 'ESTATE OF JOHN CITIZEN DECEASED' or similar.

    Income

    You need to include:

    • all income you have not yet distributed
    • income you have distributed to a beneficiary who is
      • under a legal disability
      • a non-resident, unless it is franked
       

    You don't include capital gains arising from assets that pass under the will to a beneficiary that is a tax-advantaged entity, or who is a non-resident, as these are reported in the date of death tax return. See Doing a date of death tax return.

    If you transfer an asset to the beneficiary as part of the will, you don't include capital gains. However, if you transfer or sell an asset for any other reason, even to someone who is a beneficiary, you need to include any capital gain or loss.

    If the deceased had any unapplied net capital losses when they died, these cannot be passed on for you to offset against any net capital gains of the deceased estate.

    Find out about:

    Superannuation lump sums and employment termination payments

    If the deceased person's employer paid a death benefit employment termination payment (ETP) to you as the deceased person's executor, you will receive a PAYG payment summary – employment termination payment that shows the tax-free and taxable components. It is taxed in the same way it would have been taxed if the payment was made directly to the beneficiaries, except that the Medicare levy does not apply.

    See also:

    Medicare levy

    No Medicare levy is payable.

    Last modified: 18 Aug 2016QC 49910