Page 56 - Nexia SAB&T Estate Planning Guide 2024

Deceased Deceased Estate Beneficiary

Deceased estate At distribution to heir,
acquires asset for a legatee or trustee of
base cost equal to a trust, the deceased
market value at time estate is deemed
of death to dispose of asset
for proceeds equal
to base cost of the
deceased estate. The
heir, legatee or trustee
shall be treated as
having acquired the
asset for a base cost
equal to the base cost
of the deceased estate

Capital gains tax and the deceased estate
n The executor may sell certain assets during the administration of the estate to
persons other than beneficiaries, legatees or trustees of a trust.
n The value of such assets may increase or decrease between the date of
death and the date of sale, which may have capital gains tax implications for
the estate.
n Capital gains tax is levied in a deceased estate at the same rate as for
individuals.
n The deceased estate will be entitled to the same exemptions and exclusions
as would have been available to the deceased before his death (the
annual exclusion of R40,000), however will not be entitled to any assessed
capital loss that might have remained in the estate of the deceased, or the
R300,000 exemption.
Capital gains tax and estate duty
n Capital gains tax will be a liability in the estate, thus reducing the dutiable
estate for estate duty purposes.
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