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Compliance issues for beneficiaries of estates

Beneficiaries of estates are often in a difficult position with regard to the payments and other bequests they receive from a deceased estate. They are reliant on the personal representatives (PRs) to provide them with the information they need to satisfy their tax compliance obligations. If they are not the PRs themselves, or do not have a close relationship with them, they are really in the dark as to whether they have the correct information. They are nevertheless responsible for the accuracy of their tax returns.

For some beneficiaries, the requirement to file a tax return or make a repayment claim will be an unfamiliar task. The PRs, or their advisers, should at least provide minimal guidance on what to do with the information provided to them.

Even where the beneficiary is used to engaging with personal tax matters, the receipt of a substantial bequest, is likely to be disruptive to the normal pattern of income and gains. It is advisable to have a dialogue