Category Archives: Tax

Death and Taxes: Ever heard of Estate Duty?

Death and Taxes: Ever heard of Estate Duty?

Benjamin Franklin once said there are only two things certain in life: death and taxes. Coming to terms with death and the afterlife should be left to metaphysics and theology. Coming to terms with the Tax you have to pay when you die is an entirely more straightforward endeavour.

Throughout your life you will gather many different and valuable assets, most of which you will want to pass on to your heirs when you die. Through effective Will creation and Estate Planning this should happen automatically with few, if any setbacks. The trouble comes in after you die: what Tax is liable to be paid on your Estate? This is where death and taxes meet.

Ever heard of Estate Duty?

Estate Duty is the Tax payable on your Estate, calculated according to your Estate’s worth. This is the only Tax you will need to pay on your Estate. Fortunately for you, Estate Duty is payable by the Estate itself, meaning you can rest in peace while your heirs await their inheritance. Estate Duty also means that your heirs don’t have to pay any Tax on their inheritance.

How does Estate Duty work?

When you pass on, your Executor will handle all the legal documentation required to pay the final Estate Duty on your Estate. In South Africa, SARS calculates Estate Duty the following way: 20% of your Estate’s Net worth, following an abatement of R3.5 million. This means that your heirs are guaranteed 100% of your Estate up to the worth of R3.5 million, and still receive up to 80% of what remains thereafter.

That’s all there is to it really. The time of bereavement for your family should pass by with as little stress as possible. Provided your Estate Planning has been dealt with correctly and you have appointed an effective Executor to handle your affairs when you pass on, your Estate Duty poses no real threat to the well-being of your Estate.

Filed Under: Tax

Estate Tax: Estate Duty and Abatement

Estate Tax: Estate Duty and Abatement

Learning what you’re liable to pay in Estate Tax. Over recent years the South African laws regarding Estate Tax have undergone a few changes, resulting in the need for updating Wills and Estate Planning. Keeping up to date with these changes can seriously help in this matter. Specifically, understanding how Estate Duty is calculated willContinue Reading

Filed Under: Tax

Tax and Inheritance

Tax and Inheritance

There’s no need to stress about tax and inheritance No tax is payable on an inheritance Tax is deducted from the estate when the estate is liquidated An executor administers the tax payment via estate duty Estate duty is payable at 20% of the estate’s taxable worth, once deducted by R3.5 million   Worrying aboutContinue Reading

Filed Under: Tax

Issues surrounding Estate Tax and Inheritance

Issues surrounding Estate Tax and Inheritance

Estate Tax can come in a variety of different forms, each affecting your Estate differently. This includes Tax and Inheritance, Estate Duty and Capital Gains Tax. Knowing what Taxes you are liable to pay, and how to minimise deductions to your Estate, is crucial to ensuring your heirs get the maximum possible inheritance from yourContinue Reading

Filed Under: Tax

Estate Tax: Knowing what to pay

Estate Tax: Knowing what to pay

  There are a variety of taxes to pay on your estate. Estate tax is dedcuted when the estate is liquidated. An executor administers the tax payment via estate duty. Estate duty is payable at 20% of the estate’s taxable worth, once deducted by R3.5 million. As you should be well-aware, there are varieties ofContinue Reading

Filed Under: Tax

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