SET Advisory Blog

The short answer is no. However, there can be taxes payable in other ways. Capital Gains Tax The transfer of an asset from the deceased to their estate and then to a beneficiary in accordance with the deceased’s Will does not trigger capital gains tax (CGT). However, the beneficiary will most likely inherit the deceased CGT liability when they dispose of the asset later. For example, the deceased bought a parcel of CBA shares for $30,000 in 2020. When they pas...

There is no set time limit for an estate. It can be wound up in a few months or may go for many years. It depends on how complicated the Will is, how hard it is to dispose of the deceased assets, if the Will is being contested, how young any children are, etc. The tax consequences for the Estate depend on whether the beneficiary under the Will is “presently entitled” to the income of the Estate. For someone to be presently entitled they must have a legal right t...

The executor decides to sell the deceased’s home. However, as they have been grieving the loss of their loved one, three years have gone by. What is the capital gains tax position for the executor? Generally, the executor has two years to sell the deceased’s home and still be entitled to the favourable CGT rules for main residences. If it is sold outside this time frame, capital gains is calculated on the change in the market value from the date of death to the...

If a deceased estate receives a superannuation death benefit, the estate may have to pay income tax on that benefit. If the executor does not withhold tax before paying out to the beneficiary in the Will, the executor may be personally liable. If the benefit is paid out to a superannuation tax beneficiary, no tax is payable. This includes the deceased spouse and children under 18. The notable exception are adult children*.  If they are not a superannuation...