Page 52 - Nexia SAB&T Estate Planning Guide 2024

Rebate for rapid succession
There is relief in the case of the same property being included in the estates of
taxpayers dying within 10 years of each other. The deduction is calculated on a
sliding scale varying from 100% where the taxpayers die within 2 years of each
other and 20% where the deaths are within 8 to 10 years of each other.
Valuing the deceased estate: Making an estimate of estate duty liability
n Estimate the value of the estate planner’s estate for estate duty purposes.
Life assurance for estate duty
n When ascertaining the liquidity requirements of an estate, the estate planner
must take into account estate duty liability.
n Life assurance to cover estate duty liability and thus meet liquidity needs
of the estate may be an option. The estate planner must reckon in to the
calculation the fact that estate duty will also normally be leviable on the
assurance proceeds themselves.
n Another strategy for spouses would be to take out joint assurance to cover
estate duty liability which pays out on the death of the last-dying spouse or
on simultaneous death.

DEATH AND TAXES

Income Tax: General
n When a person dies, his executor is appointed as a representative taxpayer
of the estate, and he must handle the tax affairs of both the deceased
individual taxpayer, to date of death, as well as that of the deceased estate
(post death).
n The executor is required to ensure that the deceased estate is registered
for income tax separately to that of the deceased individual. The deceased
estate receives its own tax reference number, and is assessed at rates
applicable to individuals, except that it will not qualify for any of the personal
rebates.
n The executor is required to ensure that the deceased’s final income tax return

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