Our Insights

Estates and taxes

The often quoted “The only two certainties in life are death and taxes” (Benjamin Franklin 1789), is still true today.

At Lucas and Lucas, we are here to assist executors after the death of a loved one and to guide you on the tax obligations for the estate.

Although there is no estate duty payable in New Zealand since 1993, there are still income tax obligations which need to be dealt after death.

We will help you navigate the tax obligations including any personal and estate tax liabilities, and refunds owing. This takes patience but most importantly gives our executors and administrators peace of mind that the taxes have been sorted out.

This process involves:

  • Advising Inland Revenue that the person has died and applying for a new IRD number which is for the Estate (IR596 application).

  • The executors of the estate then ensure that the required income tax returns are prepared and filed with Inland Revenue - this is firstly for the tax year starting on 1 April prior to the date of death of their loved one.

  • Then the estate files the income tax return (IR3) from the date of death to the 31 March of that tax year and then the subsequent year(s) until the final distribution of the estate (IR6).

  • Inland Revenue also requests information about the estate for tax purposes, as an estate is classed as a trust. This information includes details of all distributions and to whom, which means details of the inheritances paid and to whom.

We will assist you through the process and ensure that this is one more part of the estate that can be ticked off as completed.

For further information contact us or call (03) 477 8080

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