The death of a family member or friend is a difficult time. If you look after the estate of someone who has died, there's often tax and other financial matters to take care of. For example, you may need to file a final income tax return or make child support payments.
You need to be legally able to act on behalf of the person who died. You might have been given this responsibility in their will.
Letting us know someone has died makes sure:
- we pay any tax refund due to the person who died to their estate
- there will be no more penalties on tax owing
- any child support owed is paid, or any child support due is paid to their estate
- we know about any changes to a Working for Families situation
- we take care of any student loans
- we transfer any KiwiSaver funds we hold to their estate and let the KiwiSaver provider know.
Reporting the final income
From the tax year ended 2023 an executor will need to decide if any reportable income received in the 28 days following death, is included in either
- a final income tax return for the individual
- a return for the estate.
For further information refer to the IR288 Guide - Trust and estate income tax rules.