What's happening?
Administering an estate can involve various tax considerations, including finalising the deceased's outstanding tax affairs and understanding how the estate itself may be taxed on income earned during administration. Superannuation is a related but separate issue, as death benefits are generally paid according to the fund's rules and any valid nomination, rather than under the will.
What could it mean for me?
- Outstanding tax returns for the deceased generally still need to be finalised
- Income earned by estate assets during administration may itself be subject to tax
- Superannuation death benefits may be paid to a nominated beneficiary, the estate, or determined by the fund's trustee depending on the nomination in place
- Tax treatment of superannuation death benefits can differ depending on who receives them
What are my options?
- Engage an accountant to finalise the deceased's tax affairs alongside the estate administration
- Confirm with the relevant superannuation fund how any death benefit will be paid and to whom
- Seek combined legal and accounting advice where the estate includes significant superannuation or investment assets
What happens next?
- We identify tax and superannuation matters relevant to the estate
- We liaise with the estate's accountant where required
- We assist with claims to superannuation funds where the estate is the nominated or default beneficiary
- We help incorporate tax and superannuation outcomes into the overall distribution of the estate
How can MGE Lawyers help?
We work alongside accountants to help executors understand and manage the tax and superannuation aspects of an estate, so that distributions can be finalised with these matters properly addressed.