Page 40 - Nexia SAB&T Estate Planning Guide 2024

n This specific inclusion in the property of a deceased estate was introduced
to limit the practice of avoiding estate duty through retirement contributions,
which are not deductible and not subject to the retirement lump sum tax
tables. These contributions would otherwise pass on to beneficiaries free
from estate duty.
n Although there is no estate duty payable, his heirs may be liable for income
tax on the monthly annuity benefits.
This tool can be used effectively to provide an income for spouses or dependants.
By making contributions to an annuity fund during his lifetime, the estate planner
is effectively:
n Taking income out of his estate to create a fund which will have no bearing
on his estate;
n Creating an income tax saving (by deducting monthly premiums from taxable
income).

FOREIGN ASSETS OF A SOUTH AFRICAN RESIDENT

Foreign capital investments
n Currently South African resident individuals who are over 18, and taxpayers
in good standing, and have been granted a Tax Compliance Certificate by
the South African Revenue Service, are permitted to invest abroad. The
current limit is R10 000 000 per person per calendar year. Applications
by individuals to invest in fixed property and other investments will also be
considered in addition to the foreign capital allowance.
Single discretionary allowance(in addition to foreign capital
allowance)
Residents over the age of 18 years may be permitted a single allowance
within an overall limit of R1 000 000 per individual per calendar year, without
the requirement to obtain a Tax Compliance Certificate, to cover the following
discretionary allowances (w.e.f. 1/4/15 to cover use for any legal purpose):
u monetary gifts and loans

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