Document ID: chunk:federal_register_of_legislation:C2011C00056:clause:1_123wl
Version: federal_register_of_legislation:C2011C00056
Segment Type: clause
Provision Reference: sch 1 cl 123WL
Character Range: 60827–61974

123WL  Payment of credit balances of income management accounts—person dies

Scope

 (1) This section applies if:
 (a) an income management account is kept in the name of a person; and
 (b) the person dies; and
 (c) at the time of the person's death, the person's income management account has a credit balance.

Residual amount

 (2) For the purposes of this section, the residual amount is an amount equal to the credit balance of the person's income management account.

Lump sum payment

 (3) The residual amount is to be paid to the legal personal representative of the person as a single lump sum on a day determined by the Secretary.

 (4) The day specified in the determination must occur within the 12‑month period beginning on the day of the person's death.

 (5) If a lump sum is paid under subsection (3):
 (a) the Special Account is debited by an amount equal to the lump sum; and
 (b) the person's income management account is debited by an amount equal to the lump sum.

Tax consequences

 (6) If a payment is made under subsection (3), the payment does not have consequences under the income tax law for the person's estate.