Where a legal personal representative (LPR) derives income from the property or business of the deceased person after the date of date up to the end of the administration of the estate, they may need to report this income through a trust.
Before registering the trust, the LPR must both:
- notify the Australian Taxation Office (ATO) of their appointment to manage the deceased estate
- determine if a trust tax return needs to be lodged and whether an ABN, TFN or both are needed.
An authorised LRP includes:
- an executor or administrator with grant of probate or letters of administration
- a public trustee with probate or letters of administration, or an equivalent authority.
An LPR's entitlement to an ABN depends on whether they are carrying on an enterprise to finalise the affairs of the deceased estate. The LPR cannot use the existing ABN held by the deceased person as an individual sole trader, after that person's death. If an ABN is required, this can be applied for at the same time as a trust TFN.
If the LPR is not carrying on an enterprise, they may only need to apply for a trust TFN to manage post date of death income.