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Edited version of private advice
Authorisation Number: 1051993629712
Date of advice: 15 June 2022
Ruling
Subject: Deceased estate's net income and present entitlement
Question
Is the trustee of the deceased estate assessable on the deceased estate's net income for the financial year ending 30 June 20XX?
Answer
No. The trustee is not assessable on the deceased estate's net income. The deceased estate is fully administered as at 30 June 20XX, and the six beneficiaries are presently entitled to all the income of the deceased estate.
This ruling applies for the following period:
Income year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The individual died in the 20XX income year.
The individual had a will.
Probate was granted during the 20XX income year.
All assets of the estate have been realised to cash.
The legacies provided for under the will were paid to the relevant individuals during the 20XX income year.
The residue of the estate is to be divided into six equal parts among six beneficiaries all of which are deductible gift recipients (the six beneficiaries).
The six beneficiaries were paid $XX each prior to 30 June 20XX.
The remaining residue will be distributed to the six beneficiaries as soon as possible after the June 20XX tax return is lodged.
As at 30 June 20XX, the executors will know and be able to calculate with certainty the amount each of the six beneficiaries are entitled to.
The estate will be fully administered as at 30 June 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 99
Income Tax Assessment Act 1997 subdivision 115-C