Costs & Duties

 

Probate duty was abolished in the early 1980s for the estates of all individuals who died after that date.  Prior to this, the Federal Estate duty was also abolished.

Income Tax

The estate is liable to pay income tax on the deceased person’s taxable income up to the date of death.  If the estate continues to accrue income after the death date, the estate is liable for income tax on that accrued income.

Capital gains tax could be levied on the estate if the estate of beneficiary liquidates an asset and there is a capital profit on that sale.

The law around taxes is complex and often case specific, and as such it is recommended that one enlist the services of a qualified professional or the team at What do I do? to help navigate the convolutions of this process.

Additional Costs

There are a variety of sources of expenses that may be involved in the administration of the estate

  1. Executor’s commission – A commission may be awarded to executors and trustees
  2. Legal Fees – Solicitors will likely charge fees for the work they do with regard to the estate, whether it be consultation or the filing of legal documents.
  3. State Trustees – State trustees can charge up to 5.5% of the total value of the estate, and 6.6% on gross income received by the estate each year.
  4. A private trustee company can charge comparable fees to an individual trustee
  5. Private Executor – An individual who is appointed as executor/trustee of as awarded letters of administration is within their rights to apply to the Supreme Court for a commission up to but not in excess of 5% of the deceased’s gross assets.  The usual rate of capital commission that is awarded by the court is considerably lower, averaging around 2-3% of the gross assets of the estate.  The amount awarded is decided primarily based on the complexity of the case and the amount of time that the executor has dedicated to the affairs of the estate. An executor may also be granted a commission on the income of the estate during the time that they are serving as executor for said estate.

In order to minimize costs associated with the administration of the estate, it is highly recommended that you reach out to the team at What do I do?  We can point you in the right direction to assure that you are not incurring unnecessary ancillary costs with regard to the estate.

Related Posts

It’s time to address your Estate planning ‘Estate Planning’, it’s something that we put off.  Perhaps because we don’t feel like we have an ‘estate‘ or perhaps our ‘estate’ is too complex.  Some have lodged a will 20 years ago, the majority of us still haven’t ever got around to… Read more…

What do I do about Loss of Capacity and your SMSF

A loss of capacity of a person can occur when a person is unable to understand the nature of a document or is unable to communicate a decision. Read more…

Related listings

Koolik & Associates Lawyers

07 3482 3333

5 Discovery Drive North Lakes QLD 4509

8:30am - 5:00pm week days - Saturday, Sunday Closed

Array

Confidently seek our professional advice on three broad areas – Family & De Facto Law, Wills & Estates Law and Conveyancing Law. Koolik & Associates Lawyers is a law firm located in the heart of North Lakes, just north of Brisbane. Read more…

JJ Honeyman & Associates

0292313344

Level 5 / 300 George St Sydney CBD NSW 2000

9:00am - 5:00am week days - Saturday, Sunday Closed

Array

Established in 1973, we are a small, friendly firm centrally located at Wynyard in the CBD and dedicated exclusively to the delivery of prompt and personalised service. Read more…

S+P Lawyers

1300277000

Level 1, 75 Magellan Street Lismore NSW 2481 View Additional Office Locations

8:30am - 5:00pm week days - Saturday, Sunday Closed

Level 1, 75 Magella Street, Lismore NSW 2480
Level 2, 6 Marvell St., Byro Bay NSW 2481

Array

We have an established reputation in business law, property law, compensation law, wills and estates and litigation. Based in New South Wales, S+P Lawyers is a law firm with an established name in commercial law, litigation, property law, wills and estates, and compensation law. Read more…

Madsen Law Solicitors

0732097744

3928 Pacific HWY Loganholme QLD 4129

8:30am - 5:00pm week days - Saturday, Sunday Closed

Array

Madsen Law specialises in protecting our client's interest in any Family Law, Business Law, Wills and Estate matters. Madsen Law Solicitors is a law firm based in the Logan City suburb of Loganholme, Queensland. Read more…

Warren-McKeon-Dickson

Warren McKeon Dickson Lawyers

(02) 9525 8688

Suite 24, 20-24 Gibbs Street Miranda NSW 2228

8:00am - 6:00pm week days - Saturday, Sunday Closed

We focus on commercial law, estates, litigation, family law and property matters with an emphasis on providing efficient accurate advice. Warren McKeon Dickson is one of the largest law firms in the Sutherland Shire and has branch offices in Wollongong, Ulludalla, Pyrmont and Batemans Bay. Read more…