Deceased Estates, Charities & Tax

Recent Australian research indicates that only just over half of Australians have made a Will.  It also shows that 7.5% of those with a Will have included a gift to charity.

We have been managing a deceased estate in which all the beneficiaries were charitable.  The charities which shared the sizable residue of the estate were all exempt from paying income tax. 

"Recent Australian research indicates ... 7.5% of those with a Will have included a gift to charity".

The deceased had a very valuable share portfolio which the executor was able to sell when the market was at a peak about 18 months ago.  The capital gain was almost $6 million.  Much of this would have gone in tax but for our advice to the executor in relation to the timing of the sale of the shares.  We applied for a tax ruling to give the executor certainty.  The end result was that the Deputy Commission of Taxation accepted that the charitable beneficiaries were “presently entitled to the income of the deceased estate”.  This meant that the estate paid no tax.  The charities did not pay tax either as they were exempt.  A very happy result – more money for health research, homeless people and youth services!

c%97%B4%82%B6%E1%C7%D6%B9%E9%CD%8E%ED%CB%D7q%DE%B1%9B%AA%95%C2%E1%A6%88q%D8%E5%A9%CD%DD%C9V%93%BF%D5%E7%C6%A2%C3%88%84%85%C0%B3%96%85%D6%D2%88%AD%D3%A7%97%B1%BC%ADP%89%D3%C4%9F%C9A%BB%A4%BA%BA%7Fc%9A%C6%D4%E7%F0%8C%81%B5%9D%EC%BB%AA%96%C4%96%93r%C8%BES%C7%BF%CF%B9%DC%95%CA%BF%DF%EA%C6%B8%90y%8B