Decoding Australia’s inheritance laws: your rights and obligations explained
Key Points
- Australians don’t pay inheritance tax.
- An executor is appointed to help administer an inheritance.
- Inheritance is easiest when there is a Will. Otherwise, the courts can intervene.
“An asset can be gifted specifically – I give my car to person A. Or it may be a legacy like I give my neighbour the sum of $10,000. Or an asset may be left generally, for example I leave the whole of my estate to my children.”
What is an executor?
Florante Abad, who has practised law in both the Philippines and Australia, says in cases where an executor is not designated, the courts may need to intervene.
An executor or administrator must contact the beneficiaries and apply for ‘probate’.
Melbourne Supreme Court issued widespread Australian gagging order over political bribery allegations revealed by ‘Wikileaks’ today 30-July-2014 Melbourne Australia Credit: Nigel Killeen/Getty Images
What is probate?
The Supreme Court records applications for probate. You can view the Supreme Court Probate Registry in your area.
Who inherits if there is no Will?
“When a person dies without a Will, this is called dying ‘intestate’,” Melissa Reynolds explains.
There’s a formula in each state set out in legislation which specifies who is to receive the estate and in what percentages.
Melissa Reynolds
If there is nobody to inherit, the estate goes to the state.
Cropped shot of a senior couple meeting with a consultant to discuss paperwork at home Credit: shapecharge/Getty Images
What are my tax obligations?
Shares converted to cash will also attract CGT, and any bank interest from a cash inheritance must be declared on your tax return.
Inheriting overseas property
Special CGT rules apply if you are a non-resident, so it’s best to seek advice.
codicil to a last will and testament and irrevocable trust being signed by a 50 year old woman. Credit: JodiJacobson/Getty Images
Can I challenge an inheritance?
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