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 your Estate. Fiduciary advice cannot be understated in this regard.
Types of Estate Tax and Inheritance
Estate Tax comes in different forms, including Estate Duty, Donations Tax, Gift Tax, and Capital Gains Tax. Your Estate will also come with transfer duty fees.
All of these taxes and fees are payable by the Estate itself, meaning your beneficiaries shouldn’t bare the cost of any of the aforementioned, depending on how your Estate has been constructed and what your Last Will and Testament designates. Since all taxes related to an estate are paid by the estate itself, your heirs receive their inheritance free of any Tax obligations.
Tax and Estate Duty
Currently, estate duty is calculated at 20% of the estate’s taxable worth, flowing an abatement of R3.5 million. If your Estate is structured correctly, your heirs will never have to feel the brunt of this Tax, since all tax payable on the Estate is handled by the Estate itself. This is where the role of a Fiduciary expert comes into play.
Estate Tax Advice
Truly getting to grips with all the laws related to succession in South Africa can be a daunting task for anyone not in the Fiduciary in the Fiduciary industry. Placing your estate in the hands of a fiduciary professional can make all the difference in seeing your assets reach their full potential on the hand of the people who need them the most. Crest Trust can help you minimize Estate Tax, which ensures you heirs get the best inheritance. Get in touch with now for more information.