Taxable income of an estate

[Phanelope]

Hi
I was given probate for my mothers estate on 14th of March, 2018 so I am free to disperse on 14th of September, 2018. I am wondering what happens to any taxes I may have to pay on the estate in the 2018/2019 financial year. If I've already dispersed the funds who would be responsible for it? Should I keep aside an amount for this?

Additionally what would an estate have to pay tax on? I know it would have to on any bank interest, but what else could be considered as taxable income?

 

[Rob Legat - SBPL]

You need to engage an accountant to prepare a final tax return for the deceased, and a tax return for the estate. I suggest taxation questions are better handled by them.

 

[AdValorem]

Hi Phanelope

I agree with Rob about engaging an accountant.

All debts of the estate must be paid before the assets are distributed to the beneficiaries. The executor may be held accountable if they distributed the estate before paying off the known debts including tax.