![]() Income, which accrues to the estate after the death of the deceased but before the distribution of the assets to the beneficiaries, is dealt with under section 25 of the Income Tax Act. The assets of the deceased person will be held by the deceased estate until the liquidation and distribution account has lain for inspection and become final under section 35(12) of the Administration of Estates Act, after which the assets will be either handed over to the heirs or delivered to the trustee of a trust estate. After the date of death, the deceased estate comes into existence. Property deemed to be property of the deceased estate at date of deathĮstate Duty calculated on the dutiable amountĮstate Duty payable by the deceased estateĮstate Duty payable by beneficiary (if applicable)Īll income received or accrued before the deceased’s death is taxable in the hands of the deceased person up until date of death, and will be administered by the executor or administrator acting as the deceased’s representative taxpayer. The determination of Estate Duty can be summarised as follows – All Property of the deceased person at date of death The Estate Duty is levied on the dutiable value of an estate at a rate of 20% on the first R30 million and at a rate of 25% on the dutiable value of the estate above R30 million. An abatement of R3.5 million is allowed against the net value of the estate to determine the dutiable value of the estate. Various deductions under section 4 of the Estate Duty Act, 1955 are allowed to determine the net value of the estate. What is Estate Duty?Įstate Duty is levied on the worldwide property and deemed property of a natural person who is ordinarily resident in South Africa and on South African property of non-residents. An heir is a person who receives the balance of the estate (that is, after all disposals to a legatee are finalised). A legatee is a person who receives a specific asset from the deceased estate. Once the Executor has finalised all the administration in the deceased estate, the remaining assets (after paying all the debts) will be distributed to the beneficiaries.Ī beneficiary can consist of either heirs and/or legatees. The person who administers a deceased estate is called an ‘Executor’. Assets in a deceased estate can amongst other things include immovable property (house), movable property (car, furniture, etc), cash in the bank, etc. This estate is called an estate of a deceased person (commonly known as a ‘ deceased estate’). When a natural person (taxpayer) dies, that person is called a ‘deceased person’ and all his or her assets on date of death will be placed in an estate. 19 February 2021 – Estate Duty Implications on Key Man Policies – External Guide.For more information, scroll down to the Share Valuations paragraph. For the valuations to be done, valuation packs together with the Valuation Pack Checklist, must be provided to the Share Valuations Team at the following address. Do you want to finalise the estate as quickly as possible? The Administration of Deceased Estates leaflet will assist you to understand the parties involved and the process to report a death and an estate.Ģ0 October 2021 – The Commissioner must approve the valuation of shares held by the deceased person in unlisted companies/close corporations or shareblock companies at the time of death. 6 July 2022 – Administration of Deceased Estatesĭo you know what should happen after your family member had passed on? The surviving spouse, children, parents and heirs are directly impacted by the death of the deceased.See the below webpage for information and clarification on whether the executor can be held personally liable for estate duty and when and how to request the Deceased Estate Compliance (DEC) letter. ![]() ![]() ![]() 28 February 2023 – Additional information for Estate Duty.19 April 2023 – Updated Frequently Asked Questions: Deceased Estates.
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