Page 47 - Nexia SAB&T Estate Planning Guide 2024

n The following provisions apply in regard to determining estate duty liability:
u which property is to be included,
u which property which you may not own at the date of your death is also
included as “deemed property”
u all the possible deductions that are allowed when calculating estate duty
liability.
B Property
n Includes all property, or any right to property, including immovable or
movable, corporeal or incorporeal – registered in the deceased’s name at the
time of his death.
n Includes any tangible asset registered in the deceased’s name at his death
as well as fiduciary rights, usufructs, and certain types of annuities, and
options to purchase land or shares, goodwill and intellectual property.
C Deemed property
Insurance policies
i) Includes proceeds of domestic insurance policies taken out on the life of the
deceased, irrespective of who the owner (beneficiary) is.
The policy must be a ‘domestic’ one, in other words, a policy payable in
South Africa in South African currency (ZAR).
ii) The proceeds of such a policy are subject to estate duty, however these can
be reduced by the amount of the premiums, plus interest at 6% per annum,
to the extent that the premiums were paid by the person (the beneficiary)
entitled to the proceeds of the policy. Premiums paid by the deceased
himself are not deductible from the proceeds for estate duty purposes.
iii) If the proceeds of a policy are payable to the surviving spouse or child of
the deceased in terms of a properly registered antenuptial contract (i.e.
registered in the deeds office) the policy will be totally exempt from estate
duty.
iv) Where a policy is taken out on each other’s lives by business partners, and
certain criteria are met, the proceeds are exempt from estate duty.
v) The proceeds of any other policy not covered by the exemptions listed in (iii)
and (iv) are also exempt from estate duty if (a) the policy was not affected

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