Death, Taxes … and HECS

Hey Scott,

In your book you mentioned that HECS debt dies with you. My wife passed away in 2011 -- and the $15,000 she owed rocked up bang on settlement of her estate. So I paid it, on advice from my lawyer. Is there any way to get this back if I paid it unnecessarily?

Harry

Hi Harry,

The executor of your wife’s estate was legally required to lodge a tax return up to the date of her death, which would have included the compulsory HECS-HELP debt repayments up to that date. The balance of her HECS-HELP debt would then have officially been written off by a (weeping) ScoMo.

So if your lawyer instructed you to pay off the entire debt, you got the wrong advice. I’d be calling the lawyer up and explaining the situation, and asking them to lodge an objection with the Tax Office so you can have the funds returned. And I’d expect the lawyer to do it gratis.

Scott