Page 48 - Nexia SAB&T Estate Planning Guide 2024

by or at the instance of the deceased (b) no premium on the policy was paid
by the deceased (c) no part of the proceeds have been or will be paid into
the estate of the deceased and (d) no part of the proceeds will be utilised for
the benefit of a relative or dependant of the deceased. This could cover the
scenario of key man insurance.
Benefits payable by pension and other funds by or as a result of the death of
the deceased
u Payments by such funds (pension, retirement annuity, provident funds)
usually consist of two components – a lump sum payment on death and
an annuity afterwards. The lump sum component used to be subject to
estate duty. However as from 1 January 2009, no amount received from
such a fund will be included in the estate of the deceased for estate
duty purposes. However, so much of all the contributions made by the
deceased in consequence of membership or past membership of any
retirement annuity fund, that has not been deducted upon death, will be
subject to Estate Duty.

Donations at date of death
n Donations where the donee will not benefit until the death of the donor and
where the donation only materialises if the donor dies are not subject to
donations tax. These have to be included as an asset in the deceased estate
and are subject to estate duty.
Claims in terms of the Matrimonial Property Act (accrual claim)
n An accrual claim that the estate of a deceased has against the surviving
spouse is property deemed to be property in the deceased estate.
Property that the deceased was competent to dispose of immediately prior to
his death (Section 3(3)(d) of the Estate Duty Act)
n An example would be where the estate planner donates an asset to a trust,
and is both a trustee on the trust with total control over the trust assets,
and also a beneficiary. Although the asset is owned by the trust, the estate
planner may be deemed to be in control of the asset which may as a result
be included in his estate as deemed property for estate duty purposes.

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