It sometimes happens that the value of an estate asset is such that it cannot readily be appropriated to a beneficiary in satisfaction of their entitlement to a share of the estate (that is, the value of the asset is more than the value of the beneficiary’s percentage entitlement).

Where a superannuation death benefit is paid to the deceased’s legal personal representative (LPR), the LPR will pay any relevant tax (the death benefit is not taxed according to usual trust taxation rules based on present entitlement to income). (1) Note that the LPR does not pay Medicare levy.

Another topic that whilst doesn’t relate to tax specifically, but we have observed some horror stories where beneficiaries have historically failed to notify Centrelink they are potential beneficiaries of testamentary trusts and were later subject to audit by DSS

The balance of a student loan of an individual (like HECS, now HELP) is not an amount which is required to be paid by the estate of that person.

Enquiries made of us suggest that there may be some confusion about the use of losses in the context of a deceased estate. You should bear the following points in mind.

We have been asked many times about the tax consequences of the payment of interest on estate gifts.