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 about the tax you have to pay on your inheritance?
Well, no need. As it turns out, you can’t be taxed on inheritance. All taxes related to an estate are paid by the estate itself, meaning that the heirs to the estate do not have to pay tax. This is true also of capital gains tax.
Tax and Inheritance: Estate Duty
On the death of the owner of the estate, the estate pays for all taxes related to the estate, in the form of estate duty. This means that no heirs to the estate have to pay any tax on their inheritance. Currently, estate duty is calculated at 20% of the estate’s taxable worth, flowing an abatement of R3.5 million.
Tax and Inheritance: Role of the Executor
Minimising deductions on the estate is the responsibility of the executor on the estate and Crest Trust can assist you in this matter. To avoid hefty deductions on your estate and secure the best possible inheritance for your heirs, let Crest Trust do your estate planning and help you appoint an executor to your will.
For help with your estate planning, or for more information regarding tax and inheritance, get in touch with Crest Trust today, where we can ensure the best possible outcome for your heirs following your death.