Deceased Estate and Date-of-Death Returns
Handling the tax affairs of someone who has died — the date-of-death return and the estate returns that follow — on behalf of the executor, with care.
This work is done for people at a difficult time, and the practical obligations do not wait for the family to be ready. An executor or administrator becomes responsible for finalising the deceased person’s tax affairs, and that responsibility is personal. Getting it wrong, or distributing an estate before obligations are settled, can leave the executor exposed.
The structure is usually clearer than people expect. There is a final individual return covering the period from 1 July to the date of death, reporting income the person received while alive. Income earned by the estate’s assets after that date belongs to the estate, which is a separate taxpayer and generally lodges its own returns until the estate is fully administered. Conflating the two is the most common error, and it is one the ATO notices.
What we handle for executors
- Date-of-death returnThe final individual return covering 1 July to the date of death, reporting income received during that period.
- Estate returnsReturns for the deceased estate covering income earned by estate assets after the date of death, for as long as required.
- Outstanding prior returnsWhere earlier years were never lodged, bringing those up to date as part of finalising the affairs.
- ATO notification and dealingsNotifying the ATO of the death and acting for the estate, so correspondence is handled properly rather than accumulating.
- Asset and income identificationWorking with the executor to establish what the person actually held and what income it produced, which is often the hardest part.
- Working with the solicitorCoordinating with the estate’s legal representative so the tax position and the administration of the estate stay aligned.
Who this suits
Executors named in a will. Who have accepted the role and now need the tax obligations identified and dealt with correctly.
Administrators of an intestate estate. Where there is no will and the administrator carries the same obligation to finalise the tax affairs.
Families with an unfinished estate. Where an estate was left partly administered years ago and outstanding obligations need to be resolved.
How the work proceeds
Establish the position
What was held, what income arose, which years are outstanding, and what the ATO already has on record.
Notify and authorise
The ATO is notified of the death and the correct authority is put in place so we can act for the estate.
Prepare the returns
The date-of-death return is prepared first, then the estate returns for the periods after death, in the right sequence.
Finalise
Obligations are settled and documented, so the executor can move to distribution with the tax position properly closed out.
Estates frequently involve assets that raise their own questions — a property, a share portfolio, a superannuation interest — and the treatment on a later disposal can differ from an ordinary sale. Where an estate holds assets that are eventually sold, capital gains tax becomes relevant, and where a testamentary trust is created by the will, the ongoing administration is covered under trust accounting.
Works well with
Common questions
What is the difference between a date-of-death return and an estate return?
How long does an estate keep lodging returns?
Can the executor be personally liable?
Speak to a chartered accountant
Tell us what you need and we’ll let you know whether we can help, what it involves and what it costs — before you commit to anything.