Page 43 - Nexia Cape Town 2018 TG Digital

ESTATE DUTY

The general rule is that if the taxpayer is ordinarily resident in the Republic at the
time of death, all of his assets (including deemed property), wherever they are
situated, will be included in the gross value of his estate for the determination of
duty payable thereon� Estate duty is levied at 20% on the first R30 million of the
dutiable estate� Estate duty will be levied at 25% on the dutable estate in excess
of R30 million�
Deemed property includes insurance policies on the life of the deceased, claims
in terms of the matrimonial property act as well as property that the deceased
was competent to dispose of immediately prior to his death�
The most important deductions are:
■ Debts due at date of death
■ Bequests to various charities
■ Bequests to a surviving spouse
The Act allows for a R3�5m estate duty abatement� This abatement could rollover
from the deceased to a surviving spouse, so that the surviving spouse can use a
R7m abatement on death� The portability of the deduction will apply to the extent
that the first dying spouse did not use the whole abatement�
There is relief from Estate Duty in the case of the same property being included
in the estates of taxpayers dying within ten years of each other� The deduction is
calculated on a sliding scale varying from 100% where the taxpayers die within
two years of each other and 20% where the deaths are within eight to ten years
of each other�
Executor’s remuneration
An executor is entitled to the following remuneration:
■ The remuneration fixed by deceased in the will, or
■ 3�5% of gross assets
■ 6% on income accrued and collected from date of death
Executor’s remuneration is subject to VAT where the executor is registered as
a vendor�
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