Tax Implications For A Deceased Estate

What Is A Deceased Estate?

A deceased estate is a trust estate from the death of the person. It includes assets such as property, shares, bank deposits, and personal possessions of the person who has passed away. The income received from these assets such as rent, interest and dividends after the date of death is also part of the deceased estate.

There are income tax, capital gains tax and superannuation issues for deceased estates.

If you’re a beneficiary or legal personal representative, you are taken to have acquired the asset on the day the person died, but capital gains tax (CGT) does not apply when you acquire the asset. CGT may apply if you later dispose of the asset. The date of the person’s death may be relevant when you calculate the capital gain.


The executor or the trustee of the deceased estate is generally required by the ATO to lodge a final individual tax return for the deceased’s income. Moreover, if the deceased’s assets continue to receive income after the death, the executor may also be required to lodge a trust tax return for the remainder of the income year. In some cases, a trust tax return will have to be lodged every financial year until all of its assets and income are distributed to the beneficiaries and it is no longer earning income.



However, exemptions may apply if the executor meets certain conditions. For example, if you complete the administration in the same income year as the date of death, a trust tax return is not required if both of the following apply.

1.No beneficiary is presently entitled to any of the estate’s income.

  1. The taxable income of the estate is below the tax-free threshold for individuals.


Business Mantra can help to prepare trust estate tax return and provide you tax advice on the transfer of property and superannuation etc. If you require any assistance, please contact our Business Mantra experts on (08) 9242 3555 or email us at info@businessmantra.com.au. We shall be glad to serve you.

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