Income Tax in Estate Administration

Aim:

To demystify the income tax treatment of estates and provide some practical tips

Outcome:

Practitioners will know how to deal with pre-death income; when an estate is able to use the informal procedures and when it is a complex estate; what the difference means and how to handle each type of case

Agenda:

Finalising the income tax position to the date of the deceased’s death

• Liaison with deceased’s tax adviser
• Notifying HMRC of the death
• Outstanding liabilities
• Failure to declare income by the deceased
• Practicalities

Tackling the administration period

• Registering a complex estate
• Informal procedures formalised for small estates
• Complex estates
• Returning income and gains – SA900
• Income accrued before but paid after death
• Distributing income from estates
  • Know your beneficiary
  • Deductions
  • Discretionary interests in residue
  • Aggregate income entitlements
• Tax certificates – R185 Estate Income
• Awkward assets