Private ruling: Deceased estates
Date of advice: 27 May 2019
Published: November 2019
Ruling period: 1 July 2018 to 30 June 2019
Date scheme commenced: 2 January 2000

Ruling: Q1: Was the client absolutely entitled to the property as a beneficiary, against the trustee of the Estate? | A1: Yes. It is accepted that the client had a vested, indefeasible and absolute interest in the property. They were the sole beneficiary of the deceased estate and considered the property their own, and all parties treated it as such. Therefore, they were absolutely entitled to the property as against the estate.

Relevant facts and circumstances: The deceased and pre-deceased spouse resided in their main residence until they passed. The property was their main residence and has not used for income producing activities. The property is less than two hectares in size. The property remained in the names of both the deceased and the pre deceased spouse. The deceased remained in the property, as their main residence until their passing. The only child of both the deceased persons, moved into the property. They had a vested, indefeasible and absolute interest in the property. The dwelling remained main residence of the child until their passing. The property has not been used to produce assessable income. The executor for the deceased's child estate also acted for deceased's estate and all liabilities and debts associated with the estate have been paid. The dwelling was sold within the two year period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 106-50 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 128-15 | Income Tax Assessment Act 1997 section 128-20