Deceased estate and probate law

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Deceased Estates Blog

Western Australian Law as at date of publication

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Land Tax and Deceased Estates

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Land tax is payable for all land in the State unless exempted (section 5 Land Tax Assessment Act “LTAA”).

Exemptions as at 12/11/14 include the following at the relevant time/s – private residential property:

1.         (except property held in trust) owned by a person who uses it as his primary residence or by a husband and wife and at least of them uses it as their primary residence or by persons who have lived in a de facto relationship for at least 2 years whether or not they still live on that basis and at least one of them uses it as their primary residence (s 21 LTAA – watch owner/guarantors see Act);

2.        owned by an executor or administrator of a will where:

a.        a person is identified under the will as a life tenant or someone with a right to use the property as their place of residence for an ascertainable period or for as long as they wish and they use the property as their primary residence (s 22 LTAA);

b.        a beneficiary is entitled under the will to ownership of all or a part of the property at a fixed or ascertainable future time and the beneficiary uses the property as his primary residence as to the proportion of the property to which the beneficiary will become entitled to (s 23A LTAA);

3.        owned by an executor or administrator of an estate – only for the assessment year following the financial year in which the individual died – if the deceased’s ownership and use of the property was or would have been exempted pursuant to s 21 LTAA for the financial year in which he died and the executor or administrator is the owner of the property on 30 June of the financial year in which the deceased died and the individual’s estate does not derive any rent or other income from the property between date of death and the assessment year (s 23 LTAA).

Check the LTAA for other exemptions.

Executors and Administrators should be careful when administering an estate to ensure that the Office of State Revenue is informed of a property owner’s death so that Assessments are made where appropriate and any tax arising is paid from the assets of the estate before distribution.

Valid as at 12/11/14

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