SET Advisory Blog

An executor is the person (or persons) appointed in your Will to administer your estate after you pass away. In a lot of cases, people appoint their spouse first but if they pre-decease them, they nominate one or more of their children. If none of the executors in your Will are living in Australia at the time of your death, your estate will be considered non-resident. This could lead to the following tax consequences:   The estate may not be able to...

The short answer is no. However, there can be taxes payable in other ways. Capital Gains Tax The transfer of an asset from the deceased to their estate and then to a beneficiary in accordance with the deceased’s Will does not trigger capital gains tax (CGT). However, the beneficiary will most likely inherit the deceased CGT liability when they dispose of the asset later. For example, the deceased bought a parcel of CBA shares for $30,000 in 2020. When they pas...

Probate is the legal process through which a deceased person's will is validated by a court and the executor named in the will is given the authority to administer the estate according to the wishes outlined in the will. The probate process involves proving in court that the will is valid, identifying and inventorying the deceased person's assets and liabilities, and posting a notice in the Supreme Court that probate is being applied for. The death certificate a...

The executor decides to sell the deceased’s home. However, as they have been grieving the loss of their loved one, three years have gone by. What is the capital gains tax position for the executor? Generally, the executor has two years to sell the deceased’s home and still be entitled to the favourable CGT rules for main residences. If it is sold outside this time frame, capital gains is calculated on the change in the market value from the date of death to the...