Assets left behind by a deceased person may continue to produce income after their death. The deceased person's assets, as a whole, are called an estate.
Estate income refers to the income derived a day after the date of death until the end of the administration period .
Trust income may arise from assets held in trust by trustees of the following:
- Private trusts created by way of Trust Deeds/Settlements
- Trusts created under the Wills of deceased persons
- Intestate estates (In the case where the deceased died without a will)
Examples of Estate/Trust Income
- Rental income from property (for expenses, please refer to Rental Expenses) (For joint properties, see note below)
- Interest Income from bank/finance company (including deposits with POSB) (For joint accounts, see note below)
- Share of profit from a partnership*
- Profit from a sole-proprietorship business*
- Dividends from shares declared after death (excluding exempt / one-tier dividends)
- Director's fee and non-contractual bonuses declared after death
- Income distributions from Unit Trusts / Real Estate Investment Trusts (REITS)
- Gains from Share Options exercised after death
- Foreign -sourced income remitted into Singapore
- Other gains or profits of an income nature
*Effective YA 2008, tax at trustee (PDF, 333KB)level is final.
(Notes to item 1) Properties Held Under Joint Tenancy
When one owner dies, his share of ownership will lapse to the surviving owner(s). The surviving owner(s) are required to declare in total 100% of the rental income for the period after the death of the co-owner from such properties in their personal income tax returns.
For properties held under tenancy-in-common, please declare the deceased's share of income in the estate's returns.
(Notes to item 2) Joint Bank Accounts
The balance in the account will go to the surviving joint account holder(s) upon the death of a joint account holder.
In this case, any interest income earned after the date of death is not the income of the estate.