Private ruling: Deceased estate's net income and present entitlement
Date of advice: 15 June 2022
Published: September 2022
Ruling period: Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the trustee of the deceased estate assessable on the deceased estate's net income for the financial year ending 30 June 20XX? | A1: No. The trustee is not assessable on the deceased estate's net income. The deceased estate is fully administered as at 30 June 20XX, and the six beneficiaries are presently entitled to all the income of the deceased estate.

Relevant facts and circumstances: The individual died in the 20XX income year. The individual had a will. Probate was granted during the 20XX income year. All assets of the estate have been realised to cash. The legacies provided for under the will were paid to the relevant individuals during the 20XX income year. The residue of the estate is to be divided into six equal parts among six beneficiaries all of which are deductible gift recipients (the six beneficiaries). The six beneficiaries were paid $XX each prior to 30 June 20XX. The remaining residue will be distributed to the six beneficiaries as soon as possible after the June 20XX tax return is lodged. As at 30 June 20XX, the executors will know and be able to calculate with certainty the amount each of the six beneficiaries are entitled to. The estate will be fully administered as at 30 June 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 99 | Income Tax Assessment Act 1997 subdivision 115-C