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 probate section of the Judicial Greffe for further advice.
You should tell us 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.
How do I settle the deceased's tax affairs up to the date of their death?
To settle the tax affairs of a deceased person we 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
When we have received all the required information we will check whether tax is due, or has been overpaid, for the period to the date of death. If tax is due, we will send you a notice of assessment showing how much you have to pay. You will be responsible for paying the tax from the estate. If tax has been overpaid a repayment cheque will be sent.
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.
We will ask you to complete a return (form R59) for the period of administration of the estate and to pay the tax on that income at the standard rate of tax for the Jersey resident benefiaries (once a person has died, his or her personal allowances are no longer available to set against the income of the estate).
If you are the sole beneficiary of an estate and have agreement from us, then you can declare any income from the estate on your personal tax return and the estate return will not be required. You will need to sign a statement to this effect.
Download beneficiary of estate statement (size 3kb)
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.
The trustee has to deal with the trust assets and the income generated by those assets according to the terms of the trust. The trustee is liable to tax on the income generated by the trust property. An annual income tax return (R59) will need to be completed and the tax paid on that income at the standard rate of tax.