Australian Inheritance Law

Inheritance laws In Australia vary between states.

Every Australian should lodge a legally executable will apportioning your estate between the beneficiaries (trustees). When you die, an executor will ensure your wishes are carried out, provided no one contests it.

Dying Without A Will

If you die without a legally executable will, Australian intestacy rules apply. The courts will ultimately divide a deceased person's estate to immediate family members and dependents based on relationship and need. A will can be contested by creating a deed of family arrangement and providing evidence in court to substantiate your claims. If any relatives or their descendants cannot be found, the state will acquire the assets.

Inheritance Tax

There aren't any death duties or inheritance taxes in Australia, after they were abolished in 1979. However, if you inherit property, stocks, cash or other assets, they will be subject to capital gains taxes when disposed of at a profit. Furthermore, any income producing assets will be subject to either corporate or personal income tax.

Minimizing Tax

Australian tax law is a labyrinth of deductions, allowances and rebates. A common way to reduce the tax load of your beneficiaries is to gift your assets or transfer them to a trust fund. A nil tax band rate discretionary trust is a useful strategy which lasts for up to two years.

References

• Legal Services Australia: Inheritance Tax
• Australian Disputed Estate Lawyers: Intestacy Rules In Asutralia
• Net Lawman Legal Documents: Inheritance Tax -- Strategies To Maximise The Benefits