Death of a property owner exemption
A transfer (stamp) duty exemption can apply to the transfer of property that results from a person’s death. Find out how to claim the exemption.
You might be able to claim a transfer (stamp) duty exemption when transferring property that results from a person’s death, such as when property is distributed from the person’s estate to the beneficiaries of their will or transferred to a joint tenant.
A Form 6 Transmission application for registration as devisee/legatee is not dutiable and does not require a stamp to be lodged with Titles Queensland.
If you are a transfer duty self assessor, you can:
- refer to the deceased person’s estate exemption (s.124) toolkit for help with the death of a property owner exemption
- view a list of all self-assessed transactions, concessions and exemptions, and their related toolkits.
Deceased person’s estate
You may apply for an exemption from transfer duty when distributing the property of a deceased person’s estate. To be eligible, the transaction must be made according to the will or rules of intestacy (where no will exists or can be found).
A person dies intestate (without a will), leaving 2 adult children who share equally in the person’s estate. The estate consists of a large block of land.
The land is transferred to the children as tenants in common in equal shares. The transfer is exempt from duty.
A deceased person’s will leaves a house and land valued at $100,000 to Ann and Barry in equal shares. Barry doesn’t want to take ownership of his entitlement and agrees to accept $50,000 from Carl, who is not a beneficiary, for his half-share.
The executor of the deceased’s estate signs transfer document A, which gives a half-share in the house and land to Ann. The executor also signs transfer document B, which gives a half-share in the house and land to Carl. Carl pays Barry $50,000.
Transfer A is exempt from transfer duty because it gives effect to a distribution in the estate of a deceased person.
Transfer B is assessed for transfer duty at the standard rate because Carl is not a beneficiary under the deceased’s will and the transfer is not a distribution in the estate of a deceased person for the purposes of the exemption. Basically, Barry has transferred his interest in the deceased’s property.
How to claim
To claim an exemption, you need to lodge:
- a copy of the will or schedule of intestacy (if there is no will)
- the transfer documents
- a dutiable transaction statement (Form D2.2)
- an identity details annexure for each non-Australian transferor and transferee, when transferring real property (e.g. homes, apartments, business premises and vacant land)
- a covering letter outlining the documents you have lodged, your name and return address.
If the transfer is not in accordance with the will or intestacy, include a schedule of distribution of the property of the estate, how it is being distributed, to whom it is being distributed and the value of the property.
Duty may be payable on transactions that are not in accordance with the will or intestacy. If this is the case, you will need to provide evidence of the value of the property and any claim for the home or first home transfer duty concession (Form D2.1).
Read more about lodging and stamping documents.
For more information, see:
- section 124 of the Duties Act 2001
- Succession Act 1981
- public ruling on distributions in the estate of a deceased person—power to appropriate (DA124.1)
- public ruling on dutiable transactions in accordance with the Succession Act (DA124.2).
Receiving an interest in land from a distribution of a deceased estate may affect a beneficiary’s land tax liability.
Joint tenancy
You don’t need to pay duty on a transfer that results from the death of a joint tenant.
Because of the rules of survivorship, the deceased person’s share in the property passes immediately to the surviving joint tenant(s) and is an exempt transaction.
This exemption doesn’t apply to property held as tenants in common.
For more information:
- see section 144 of the Duties Act 2001
- read information on recording the death of a joint tenant.