Executor - Tax return for the deceased

baby_boomer

Any advice on this one?

I guess the big picture is that there will be a repayment of tax to the estate unless the deceased dies right at the end of the tax year?

And so that must mean that I can't distribute the estate until this reclaim has happened.

Do I need the grant of probate before proceeding with this?

getmore4less

You will get a R27 from the tax office and you fill that in.

They may ask for a full return later depend if it is simple or not.


If there is IHT to pay you need to estimate on the IHT205/IHT400 to get tax clearence for probate.

Savvy_Sue

baby_boomer wrote: »

Any advice on this one?

I guess the big picture is that there will be a repayment of tax to the estate unless the deceased dies right at the end of the tax year?

And so that must mean that I can't distribute the estate until this reclaim has happened.

Do I need the grant of probate before proceeding with this?

You can't finally distribute the estate, but there is nothing to stop you making interim payments if you are confident the estate can afford it, IYSWIM.

For example, we haven't yet done Dad's tax return, but we've cashed in all the bank accounts and the premium bonds, and the legal notices have gone into the London Gazette so we're confident there are no debtors. We've kept some money in the Executor's account just in case there's a tax liability, but the rest has been dished out. The last payment we made was when Dad's premium bonds were cashed.

Obviously this is more difficult if there are % distributions to make, and my co-executor insisted that everyone be told that we'd be asking for some money back if we'd made some awful mistake, but we were confident it was OK.