In the Event of Death
Before you can act as an executor or administrator, you will normally have to get legal recognition. This takes the form of a document known as the 'grant of probate' or, if there is no will, 'letters of administration'.
If you have not already obtained legal recognition, you should contact the Judicial Greffe - Probate Section - for further advice.
When should you tell the Comptroller of Income Tax about the death?
As soon as you can. This helps to avoid relatives being upset by tax bills or letters addressed to the deceased person.
Settling the deceased's tax affairs up to the date of death
The Comptroller will need
to see the Grant of Probate or Letters of Administration
completed tax return for the year in which death occurred (and sometimes for earlier years)
business accounts not previously sent in for the years up to the date of death, if the deceased was self-employed.
What will the Comptroller do?
When he has received the completed tax return (together with the final business accounts if the deceased was self-employed) he will check whether tax is due, or has been overpaid, for the period to the date of death.
If tax is due, he will send you a notice of assessment showing how much you have to pay. You will be responsible for paying the tax.
If tax has been overpaid, he will send you a repayment.
Paying tax on income of the estate after the date of death
As administrator or executor, you may receive income due to the estate from the date of death until you complete the administration of the estate.
The Comptroller will ask you
to complete a return (form R59) for the period of administration of the estate
to pay the tax on that income at the standard rate of tax (once a person has died, his or her personal allowances are no longer available to set against the income of the estate).
Will Trust
After the administration of an estate is complete and the executor's responsibilities are over, the estate may not necessarily pass to the ultimate beneficiaries straight away. The deceased's Will may create a trust.
What are the responsibilities of a Trustee?
As trustee you have to deal with the trust assets and the income generated by those assets according to the terms of the trust.
In your capacity as trustee, you are liable to tax on the income generated by the trust property.
The Comptroller will ask you annually
