June 13, 2017 Steve Wildes

Deceased estate checklist

Steve Wildes

Steve Wildes

Partner
Steve Wildes has years of small business tax experience and is adept with Estate Planning matters, bringing a practical approach to dealing with family wealth protection and succession.

This checklist will help you manage the Australian tax affairs of someone who has died.

If the deceased person’s tax affairs included carrying on a business, you may need to seek further advice from Paris Financial otherwise these are the steps to follow when someone has died:

Step 1. Did the person have a will?

  • Yes – Determine who is the executor. Go to Step 2.
  • No – Have you or someone else applied for letters of administration? If yes, go to Step 2. If no, consider contacting the public trustee or a solicitor to determine if they will act on behalf of the deceased person. If so, they will take any action required.

Step 2. Has probate been obtained by the executor or has the court granted letters of administration?

  • Yes – Go to Step 3
  • No – You may need to provide further information if you wish to establish authority to deal with the tax affairs of the deceased person. Go to Step 3.

Step 3. Notify the tax office of the person’s death

You can notify the ATO of the person’s death online, or by completing the paper form Notification of a deceased person (NAT 74279) and submitting this by mail or in person at an ATO shopfront.

By doing this, you will have:

  • officially notified us of the person’s death
  • made the ATO aware of relevant parties acting on behalf of the deceased estate, such as the executor or administrator.

If you notify us online, you will need to attend an Australia Post outlet for an interview and present a copy of the death certificate and supporting documents. Otherwise, you will need to present the supporting documents to us at an ATO shopfront or send certified copies by mail.

Alternatively, if you are the executor or administrator Paris Financial can act on your behalf.

Go to Step 4.

Step 4. Do you need to lodge a final individual tax return?

You should also check for outstanding income tax returns for previous years.

  • Yes, a final return needs to be lodged – The final return should cover the period from 1 July of the income year in which the person died up to the date of death. Go to Step 5.
  • No, a final return does not need to be lodged – Complete a Non-lodgment advice for the year and send this to us. On the form, where it asks for ‘Reason for not lodging a tax return’ write ‘DECEASED’ and the date of death. Go to Step 5.

Step 5. Do you need to lodge a tax return for the deceased estate?

  • Yes, a final return needs to be lodged – Go to Step 6.
  • No, a final return does not need to be lodged – If all of the above has been completed, no further information is required by the ATO.

Step 6. Obtain a tax file number (TFN) for the deceased estate

Complete and submit a TFN application for a deceased estate (NAT 3236). This is required as a deceased estate is treated as a trust for tax purposes. Go to Step 7.

Step 7. Lodge the deceased estate tax return(s)

You may need to lodge a tax return each financial year until the deceased estate has been fully administered and is no longer earning income.

If you have any questions or require assistance with a deceased estate please contact Paris Financial on 03 8393 1000.

Steve Wildes, Partner, Paris Financial

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Image courtesy of yodiyim at FreeDigitalPhotos.net

 

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Steve Wildes

Steve Wildes

Partner
Steve Wildes has years of small business tax experience and is adept with Estate Planning matters, bringing a practical approach to dealing with family wealth protection and succession.

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