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PaulZ(Initiate)Initiate
13 Jan 2024


I am a Sole Executor of a deceased estate.


There's no Trusts setup as part of the Will.


A Residential Bond has been returned into an Estate of Bank Account ($500,000) and I wish to wait the 6 months before disbursing the funds to the beneficiaries.


I wish to setup a TERM Deposit for 6 months (at 5%) .


In setting up the TERM Deposit - the Banks (Macquarie/Bank Australia) require a TFN. Whose TFN should I provide? My personal TFN or should I apply for a Deceased Estate TFN? Will this ensure the interest income earned will not be automatically allocated to my personal TFN?


I say this , as from what I have read , the Estate will have earnt the interest, not me.

Interest income will be $12,500 under the Tax free threshold - so the Estate is not due to pay any tax.




Questions

  1. Should I apply for a deceased TFN before opening a TERM deposit?
  2. If I use my personal TFN - will the interest automatically downloaded to me - even though the Banks will have the probate information


Thanks

Paul.




3,697 views
3 replies
3,697 views
3 replies

Most helpful response

Most helpful reply

Taxduck(Taxicorn)Taxicorn
13 Jan 2024

If you use your personal TFN then the interest earned will show on your Tax Office records as yours and will be regarded as your income. To avoid this happening apply for a TFN for the deceased estate. If the interest earned is less than $18200 then no tax will be payable. (the estate has the benefit of the tax free threshold for the first 3 years after date of death).

You may not need to lodge a tax return. See link. https://www.ato.gov.au/individuals-and-families/deceased-estates/doing-trust-tax-returns-for-the-deceased-estate/when-and-how-to-lodge-returns-for-a-deceased-estate

All replies

Most helpful reply

Taxduck(Taxicorn)Taxicorn
13 Jan 2024

If you use your personal TFN then the interest earned will show on your Tax Office records as yours and will be regarded as your income. To avoid this happening apply for a TFN for the deceased estate. If the interest earned is less than $18200 then no tax will be payable. (the estate has the benefit of the tax free threshold for the first 3 years after date of death).

You may not need to lodge a tax return. See link. https://www.ato.gov.au/individuals-and-families/deceased-estates/doing-trust-tax-returns-for-the-deceased-estate/when-and-how-to-lodge-returns-for-a-deceased-estate

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PaulZ(Initiate)Initiate
14 Jan 2024

Thanks for that information -


In trying to apply for a TFN for a Deceased estate the ATO / ABR links are confusing.

  1. If you use the printable form 3236-07.2016 , then it appears all okay and is the form for applying for a TFN for a Deceased Estate


  1. If you use the online TFN for Deceased Estate application , it goes to the ABR website and it ask different questions compared to the Form.. it's confusing and complex compared to the Form. ( I have applied only for a TFN , not ABN)..

I wish to use the online application for TFN for Deceased estate - as it's quicker - but may need call ATO


Thanks again TaxDuck.


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Do I a need TFN as Executor of Probate where interest income will be generated? | ATO Community