Estate Tax accountant | Fremantle Nedlands Perth
Deceased Estate Tax Planning
People often overlook how their assets are to be distributed upon their death and delay making their estate plan. Estate planning is imperative to ensure your wealth is distributed to the intended beneficiaries tax effectively and the assets of the estate are protected.
Estate planning allows the deceased to control their estate from the grave. This involves formulating a well-structured estate planning that can provide tax savings, and protect the estates from creditors, divorce and spendthrift beneficiaries. Estate planning can also ensure your wealth is used only for good purposes and to provide for your grandchildren. An estate planning strategy may include the use of a testamentary trust and/or the use of a life tenant and remainderman arrangement.
Will
We are often too busy with our family and work, and delay planning for our will. We often overlook updating our will after experiencing a significant event in our life such as divorce, birth, and death in the family. We may not be aware that the validity of our will may not withstand being scrutinised in court.
The heart of estate planning is having a valid will that is formulated to suit the objectives of the deceased and also provides some certainty and flexibility. There is no “one size fits all” will because every individual has different financial positions, circumstances and objectives.
A will sets out how and to whom the assets of the estate will be distributed after death. Having a will avoids the assets being distributed under state laws. Dying intestate may be against your will and it can cause unfairness to your beneficiaries because the estate will be distributed according to the state laws.
Not all assets of the deceased are included in the assets pool of the estate. Assets that do not form part of the estate are assets held jointly, assets owned in family trust and company, and superannuation interest. Assets included in the estate are assets held in the deceased’s name, shares in a company and units held in a unit trust. Joint tenancy assets are passed to the surviving joint owner when one of the joint owners dies.
A will can be formulated to protect the estate from bankrupt beneficiaries, divorce, and spendthrift beneficiaries. This can be done by establishing a testamentary trust that can restrict the beneficiaries from accessing the income and capital of the trust. Special disability trust can also be established to provide for a disabled child (or relative) and preserve some or all of their Centrelink benefits which could be lost when the disabled child receives inheritance. Using a will also has a limitation as the assets in the will are subject to the family provision claim if the will is being challenged.
Tax administration of deceased estates
When you have lost your loved one, tax is not your priority. We can help you simplify the tax administration of the deceased while you are grieving.
In administering a deceased estate, the executor is responsible for finding the will, applying for probate, managing the assets of the deceased, paying any outstanding liabilities of the estate, organising the tax obligations of the deceased, taking care of any family maintenance claims, maintaining appropriate accounts and records of the estate. Once the administration is completed, the executor distributes the assets of the estate to beneficiaries. A testamentary trust is created at this final stage if the will provides for this.
- Ezzura Tax Advisory can help to:
- prepare and lodge the final individual tax return for the deceased
- prepare and lodge any outstanding individual tax returns for the deceased
- prepare and lodge tax returns for a deceased estate
- prepare financial statements for a testamentary trust
- prepare and lodge tax return for a testamentary trust
- requesting an extension of 2 years disposal requirement of an inherited dwelling
