When an artist dies, the resale payment goes directly to the beneficiaries under their will, or to their estate. In these situations, the resale payment is not taxable income. The artist’s beneficiaries or estate will not need to pay income tax on the resale payment.
The artist’s estate or beneficiaries can decide to transfer the rights to future resale payments to a third party. However, the tax outcomes may be complex. We recommend that you ask a tax professional for advice.
Read the full IRD article ‘Resale payments for artists’ here.