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Estate Planning, Wills and Estates

We provide the following services :

Estate Planning
The administration of estates
Drafting of wills
Registration and administration of trusts

For the latest developments regarding the R 7 M rebate available to married couples please see the newsletter on this topic. It may not be as simple as previously thought .

Estate duty currently works as follows in South Africa :


The general rule is that, if the deceased was ordinarily

resident in South Africa at the time of death, all his assets, wherever they are situated, will be included in the gross value of his estate for the determination of duty payable thereon. Exceptions will include assets owned by the deceased prior to immigration to South Africa or inherited from a nonresident. The dutiable amount is arrived at as follows: Value of all property at date of death (including limited interests such as usufructs, and off-shore assets) R������ Deemed property * R������ Gross value of property R������ Deductions ** R������ Net value of estate R������ Abatement R (3 500 000) Dutiable amount R������ Estate Duty thereon at 20% R������ * Deemed property includes: insurance policies on the life of the deceased as well as any accrual claim the deceased�s estate may have against a surviving spouse. ** The most important deductions are: - funeral expenses and administration costs; - debts due at date of death, which includes the income tax and CGT liability of the deceased for the period prior to death; - charitable bequests; and - property and deemed property passing to a surviving spouse (as defined). There is relief from estate duty in the case of the same property being included in the estates of taxpayers dying within 10 years of each other. The deduction is calculated on a sliding scale decreasing from 100% where the taxpayers die within two years of each other to 20% where the deaths are within 8 to 10 years of each other. It has been proposed that further relief be granted in the form of an automatic rollover of the unused portion of the R3 500 000 abatement from the estate of a predeceased spouse to the estate of the second-dying spouse. If the deceased party was not ordinarily resident in South Africa, only those assets located in South Africa will be subject to estate duty. South Africa has entered into reciprocal agreements (double taxation agreements) with many countries for the avoidance of double estate duty being payable in respect of the same property. 54 55 Rates Estate duty is payable on the resultant dutiable amount of

the estate at the rate of 20%.

Source : Old Mutual Budget review

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