The need for a Will

If you die without leaving a Will, you will be considered to have died "intestate". Similarly, if you die leaving a Will which does not dispose effectively of all or part of your estate, you have died wholly or partially "intestate".

As a result, your assets will be distributed according to the intestacy laws operating in the state at the time of your death.

When a sole director of a company dies without leaving a will, the complications and distress can have an even greater impact. The death will usually leave the company without any person properly authorised to immediately manage the company. In this instance, a Will is very important.

If you would like your wishes followed after your death, including leaving money or possessions to family, friends, your church, favourite charity etc. it is essential to  have a Will.

Your will should ideally be professionally prepared by an experienced solicitor, and regularly reviewed, especially in the case of any major changes to your assets, health or family.

Taxation and death

In the event of death if an individual was lodging tax returns prior to their death in most cases the accountant will need to prepare a tax return to date of death and a deceased estate tax return will need to be lodged from the date of death till when probate is granted.

A new tax file number will be needed for the estate return. We will also need a copy of the death certificate in order to apply for the new tax file number.

Taxation of the return to date of death is the same as if the individual were alive. You receive the full tax-free threshold and are taxed at individual rates.

If the individual was receiving benefits from the Government a surviving spouse may be entitled to a Bereavement Allowance or a Bereavement Payment. Please visit the Human Services site for more information or contact your manager or partner at Goodwin Chivas and Co.

Terminal Illness Assistance

If you are diagnosed with a terminal illness, you may be eligible to access your superannuation benefits. There is no limit on the amount you can withdraw, although the payment will be subject to any rules set by your super fund.

A payment from your provider will be made as a tax-free super lump sum payment as long as your super is within a complying super provider or with an annuity provider.

For the payment to be tax-free you must have a terminal medical condition that meets the following conditions:

• Certification from two registered medical providers (see the ATO website for full details).
• At least one of those providers is a specialist practising in an area related. to the illness or injury.
• The 24 month certification period has not expired.

There are certain conditions that need to be met and documents required prior to the funds being released. Please visit the 

ATO website or speak with your super fund for further information.

If you have any questions, email us or phone or friendly team on 02 9899 3044.