Tax Responsibilities of Executors

A person who has obtained probate can seek sound advice from a lawyer and have all that paid from by the deceased’s person’s estate.

After the executor has obtained a grant of Probate or other authority from the Probate Office , the executor has a number of responsibilities following obtaining the grant.

A personal representative has the following duties regarding tax.

  1. the executor is answerable as taxpayer for all income received as an executor and for the payment of tax to the the Tax Authority ;
  2. to lodge tax returns to the ATO in respect of that income which shall be the same as far as practicable as the the person who has died if living, would have been responsible to make;
  3. is   allowed and required to keep back from time to time out of any money which comes to him/her in his/her capacity as executor so much as is sufficient to pay tax which is or will become due to the ATO in respect of the income;
  4. may become personally liable for the tax payable in respect of the income, to the extent of any quantity that he/she  has retained, or should have retained but he/she  shall not be otherwise personally liable for the tax.

After the personal representative has obtained the grant, the person is required to:

  • Give all returns and information to the ATO that the deceased person would have had to provide if still alive;
  • file any additional returns that the ATO requires
  • discharge any tax liability or penalty from the deceased person’s estate that the deceased would have been required to pay if still alive.

Please see a lawyer if you need more information about applying for probate in Western Australia.  There are many good lawyers in Perth for you to seek advice from.

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