bakedbean

Can someone clue me in on something odd I am reading.

OK, here's the deal. I'm about to do a new Will. I'm not Australian, I'm British but not domiciled or resident in the UK. And where I live (Malaysia) there is no Inheritance Tax.

But I'm thinking of leaving *something* to my dear little Australian niece and nephew. In fact they are technically not niece or nephew. I think 3rd cousins or something.

I'm just reading here
https://www.ato.gov.au/Individuals/D...ies-are-taxed/
about how beneficiaries are taxed in Oz.

There is an intriguing line:
quote
There may be some tax obligations for beneficiaries, depending on the nature of any distribution they may receive.
unquote

What does that mean exactly?

OK, why should I care? I will be on a cloud playing my celestial violin or supping a glass or two of virtual wine, but I really don't like Governments of any kind getting at any of my dosh

moneypenny20

I think (but don't know for sure) that it will depend on what their tax position is when you kark it and how much you leave them. We don't have Inheritance Tax. If they're still children or the amount inherited keeps them below a particular 'income' then they won't be taxed. If they're adults and the amount is relatively substantial they 'could' end up paying tax.

bakedbean

Well that's damn sneaky, isn't it

moneypenny20

Tax generally is.