For the Executor
Like most of our clients you probably find yourself an executor of a will for a family member or friend for the first time and with everything going on this can be quite overwhelming.
So where do you start? Do you need a lawyer, a financial planner or accountant? Or all three?
While every estate is different they all have one thing in common, you as the executor are personally responsible for finalising the affairs of the deceased.
That’s where we come in, we can help you with the finalisation of the tax affairs for the deceased and the estate.
Below are a couple of the key requirements that we can help you with to ensure that the tax obligations for the deceased and the estate are met:
In relation to the deceased:
- Tax File Number (TFN) Recovery – the recovery of the deceased’s TFN if lost
- Tax Needs Assessment – summary of the deceased’s outstanding lodgements and tax obligations
- Outstanding tax returns – lodgement for any outstanding prior year income tax returns and
- Date of death return – lodgement of a final tax return, for the period from 1 July to date of death.
In relation to the estate:
(Yes… unfortunately they are two separate elements that have to be dealt with individually)
- Application for the estate tax file number (TFN)
- Lodgement of any trust income tax returns
- Providing beneficiaries with the information they need to include distributions in their own returns and
- In certain cases advising of the tax to be withheld on behalf of the beneficiaries.
Q. Why is it that the executor needs to address any tax issues, before distributing the assets of the estate?
Unfortunately, under the current legislation, the executor may become personally liable for any outstanding tax debts or unidentified tax obligations if the executor has distributed all the assets of the estate to the beneficiaries.
In short the executor gets left with the tax bill…..
Your first step
- Contact us when you are appointed as executor so we can identify any outstanding tax debts and obligations.
- We will deliver a Tax Needs Assessment and provide you with a summary of the deceased’s outstanding lodgements and tax obligations.
- As a result, you will be provided with the necessary knowledge, early on in the estate administration process, to address the tax affairs of the deceased and the estate.