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Deceased estate transfers

If you've received property from a deceased estate, 'in accordance with the terms of the will',  you'll pay transfer duty at a concessional rate of $50.

For transmission applications or transfers entered into on or after 1 February 2024, this will increase to $100.

Beneficiary of the will

'In accordance with the terms of the will' means you’re entitled to the property as the beneficiary (inheriting money or other property):

  • under the terms of the will, or
  • if the person died without leaving a valid will, under the rules of intestacy.

If a will is contested, the duty will be determined by a court order, because the order acts as an addition (codicil) to the will. Any transfer made under the order is considered to be a transfer in accordance with the terms of the will.

Transfers not in conformity with the will

The beneficiaries of a will often decide to vary their entitlements.

For example, one beneficiary may decide to gift or sell part of a property they inherit to another beneficiary. When this happens, the normal rate of transfer duty applies to any part of the property that varies from the terms of the will.

If you vary the entitlements under a will this way, you must provide a valuation report as evidence of the value of the property, so that we can assess the duty.

Here are some common examples of how transfer duty applies when you vary the terms of the will.

Example: One beneficiary becomes owner of property left to another

Under the terms of the will, equal shares in the family home are left to Jo and Lee by their parent.

The family home is valued at $500,000.

Lee agrees to pay $250,000 to Jo in exchange for Jo's half share of the home.

The 50 per cent of the home Lee was entitled to under the will attracts no duty.

However, the 50 per cent bought from Jo attracts duty at the standard rate or $7,240.

Example: Beneficiaries agree to become owners of different properties

Under the terms of the will, a parent leaves  equal shares of a family home and a holiday home to Sandy and Alex.

The family home is valued at $400,000, the holiday home $500,000.

Sandy and Alex agree that Sandy will become the sole owner of the family home, while Alex will become the sole owner of the holiday home.

As a result, Sandy must pay duty on the 50 per cent of the family home that was left to Alex. The duty on the $200,000 half-share is $5,490.

Alex must pay duty on the 50 per cent of the holiday home left to Sandy. The duty on the $250,000 half-share is $7,240.

Surcharge purchaser duty exemptions

You don't have to pay surcharge purchaser duty when:

  • you're classified as a foreign person
  • you inherit property in accordance with the terms of the will.

However, you must pay the duty if you receive:

  • property in another way, such as having it transferred from another beneficiary
  • part of a property via a will and part of it another way, in which case surcharge purchaser duty is payable on any proportion of the property you didn’t receive in accordance with the terms of the will.

Lodging an application for duty assessment

Your solicitor or conveyancer can lodge your application for duty assessment. You'll need to give them:

  • the original executed transmission application or transfer
  • purchaser/transferee declaration
  • proof of your identity
  • a copy of probate and the will, together with the schedule of inventory owned by the deceased, or a copy of the letter of administration confirming the assets owned by the deceased.

Depending on how you acquire the property, you may also need to include:

  • a copy of the deed of family arrangement, if an agreement has been made to vary the terms of the will
  • a copy of any court orders, if a will has been successfully contested
  • evidence of value of the dutiable property being transferred, if the parties aren't dealing with each other 'at arm’s length'.