Deceased estates and the ATO Clearance Certificate requirements

Recently we had a sales representative raise a query – their client was deceased and the sale transaction was taken over by the executor of the estate as Legal Personal Representative. Is a Clearance Certificate required?

The ATO has advised that:
Where the property is transferring to the executor / legal personal representative, no clearance certificate is required.
If the executor / legal personal representative is disposing of the property to a third party (and not a beneficiary of the deceased), then the executor / legal personal representative would need to obtain a clearance certificate in their own name.

If the Public Trustee is registered on the Certificate of Title we suggest the wording on the contract for the buyer to state:

“The buyer is aware that the Public Trustee is registered on the title and falls under the exempt category (variation to the Taxation Administration Act 1953 under subsection 14-235(5) of Schedule 1) with the ATO for obtaining a clearance certificate.”

Any queries in the meantime, please feel free to us at Chalk Property www.chalkproperty.com.au or +61 08 95278322.