Hi @PeeJayDee,
The New Zealand estate will not automatically be taxed by us.
Whether we have taxing rights depends on whether the estate is treated as an Australian resident trust for tax purposes. This is based on factors such as where the estate is centrally managed and controlled and the residency of the executor.
For the estate, any income generated after the date of death (such as bank interest or returns from the managed investment account), may be taxed. If the estate is an Australian resident trust, this income would need to be reported in a trust tax return.
CGT will generally not apply when assets pass to beneficiaries under the will. However, if the estate later disposes of assets such as the managed investment account, CGT may apply. This depends on the tax residency of the estate and the nature and location of the assets. The cost base of assets is often reset to their market value at the date of death, although this depends on the specific circumstances of the assets.
You’re first step is to confirm the Trust’s residency status. This will help you work out if you need to lodge a return.
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