Executors of deceased estates are often confused about whether and when to lodge tax returns on behalf of the deceased person and their estate.
Ask yourself: if these were your own personal financial affairs would you have an obligation to lodge an income tax return?
The Deceased (and their representative) has fundamentally the same requirements to lodge a return as any individual taxpayer.
One of the duties of an executor in administering an estate is to satisfy any outstanding debts owed by the deceased upon their death.
An executor who is aware of an outstanding claim by a creditor, or a possible claim against the estate, but nevertheless distributes the estate, may be personally liable to the creditor.
Although there is no requirement in South Australia to advertise for creditors, it is generally advisable to do so in order to enjoy the protection afforded to estate executors and trustees by s. 29 of the Trustee Act 1929 (SA).
Contact Genders and Partners today on (08) 8212 7233 to arrange a FREE telephone consultation and to request a FREE copy of our special Report: “7 Things You Must Know About Wills and Estate Planning”. Genders and Partners is located at Suite V1, Level 3, 169 Fullarton Road Dulwich, South Australia 5065
In a 2014 Judgment, the Supreme Court of Queensland ruled that the administrator of a deceased estate breached her fiduciary duty by applying for her deceased son’s superannuation benefits to be paid to her personally, rather than on behalf of his estate.
This is an example of where a little knowledge can be a dangerous thing. Probate and Deceased Estate administration is a specialised area of law. Don’t be fooled into believing the lady at the hairdresser or the bloke down the pub who says that it is easy to do this yourself, or that the lawyer who handled your divorce, or your uncle’s drink-driving offence, can easily do this. If you pay peanuts, you’re very likely to get monkeys.
