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Louisa66(Newbie)Newbie
27 Oct 2023

Can a Legal Personal Rep (Spouse of the deceased) give beneficiaries (adult children) more than what they are entitled to under Victorian Intestacy Laws?

e.g. if law states spouse gets majority and each adult child is entitled to $20,000, can they be given $50,000 if the LPR (Spouse) determines that they should receive more?


If yes - are there any tax implications for the children?

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Taxduck(Taxicorn)Taxicorn
27 Oct 2023

Inheritances are tax free. It's not assessable income. Doesn't matter to the ATO how much any beneficiary receives.

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Taxduck(Taxicorn)Taxicorn
27 Oct 2023

Inheritances are tax free. It's not assessable income. Doesn't matter to the ATO how much any beneficiary receives.

TobyJDodd(Devotee)Registered Tax Professional
27 Oct 2023

Hi @Louisa66


In Victoria, If the deceased died without a valid will (intestate). The distribution of the estate is governed by a statutory scheme.


The LPR does not have the power to vary that.


I note that, where the deceased leaves a spouse and they had children with that person only, the partner takes the whole of the deceased’s estate. The children do not have a separate entitlement


There is nothing to stop the spouse gifting their share to the adult kids after they get it.


I also note that, whilst most inheritances are tax free, there are some assets that are not. The main situation is when the assets of the deceased include a superannuation benefit and that benefit is paid to a non dependant beneficiary. (But that’s outside the scope of your question)


Toby

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Victorian Intestacy Law for estate distribution - can an executor change the distribution of assets? | ATO Community