2007-01-20 16:16:02 · 8 answers · asked by sweatpea 1 in Business & Finance ➔ Taxes ➔ Australia
In most cases, the answer is NO!
However, there are always exceptions to the rule and it depends on how you define the terms used. There is no inheritance tax, but the assets of the deceased may be subject to other taxes. A person still subject to income tax and other taxes up to the date of death, with the estate being subject to tax on earnings.
1. Cash left to beneficiaries of a will is not income and therefore not taxed.
2. The proceeds from the sale of the deceased primary place of residence (home) left to beneficiaries is also tax-free. (Also CGT free)
3. Investments may be subject to capital gains tax. The transfer of an asset is deemed to be a CGT event. If you have been left an investment, then you may be liable for the tax on the gain when you sell. (Half the gain is added to your taxable income). If the estate sells the investment then the estate pays the CGT.
4. Superannuation funds (known as 401K's to our Seppo friends)left to non-dependents attract a 16.5%* tax. that includes the value of any insurance that forms part of the super fund.
However, it is common for the executors of the estate to determine what level of taxes (if any) apply and then pay the taxes out of the estate before distributing the proceeds. Therefore, any tax that is due will be paid before you get the money from the will, so no extra tax will be payable.
Once the money has been distributed, then any income derived from that money is taxable by the person who inherited it.
* Untaxed super funds (unfunded government defined benefit funds) are taxed at 31.5%
Hope that helps. More details would allow a more detailed answer. e-mail me if you need further info.
2007-01-21 16:30:44 · answer #1 · answered by Quaven 2 · 2⤊ 0⤋
Inheritance Tax Australia
2016-09-28 08:34:31 · answer #2 · answered by ? 4 · 0⤊ 0⤋
This Site Might Help You.
RE:
Do you pay tax on money left to you in a will in Australia?
2015-08-10 14:23:08 · answer #3 · answered by ? 1 · 0⤊ 0⤋
You do not pay US federal income tax on the inheritance. You would pay US tax on any earnings from the inheritance.
I don't know about Australia inheritance or income tax.
2007-01-20 16:29:16 · answer #4 · answered by ninasgramma 7 · 1⤊ 1⤋
I ve inherited funds from my fathers will. what happens if I share some of the money with my son, tax wise.
2015-06-10 12:29:38 · answer #5 · answered by Kerry 1 · 0⤊ 0⤋
Don't you think it's a dodgy thing to do?
2016-03-13 04:16:10 · answer #6 · answered by ? 4 · 0⤊ 0⤋