On a trust return, when a death benefit employment termination payment (ETP) and/or a superannuation lump sum is paid to a client’s deceased estate:

  • do not record these amounts as distributed to beneficiaries of the trust;
  • include the assessable amounts at item 54 Statement of distribution at ‘Income to which no beneficiary is presently entitled’. This ensures the tax liability raised is correct and the benefits of any tax concessions are realised.
  • Include the assessable components at item 13 on the trust return

We will then use the taxed and untaxed elements of the death benefit shown at item 13 to determine how much tax the trustee of the estate is liable to pay.

Last modified: 27 Apr 2015                                                        QC 44927

[ATO website] [LTN 79, 28/4/15]