Page 33 - Nexia SAB&T Property and Tax Guide 2025

◆ Transfer duty: There is no transfer duty payable.
◆ Capital Gains Tax (CGT) consequences: immovable property bequeathed to
a surviving spouse does not incur capital gains tax, as this will be subject to
roll-over relief.
SALE OF THE PROPERTY BY EXECUTOR TO A THIRD-PARTY PURCHASER
◆ The Executor can cause the immovable property in the estate to be marketed
and sold, before the Liquidation and Distribution Account has lain for inspection,
where:
◆ The Executor deems it beneficial to do so (for liquidity in the estate).
◆ The deceased has specifically instructed that the property be sold in his Last
Will and Testament.
◆ The heirs or the beneficiary/s wish the property to be sold, or have entered
into a redistribution agreement to this effect, and the heirs have consented to
the sale and there is a clause in the agreement of sale stating that the sale is
subject to the approval of the Master of the High Court.
◆ The Executor would sign the sale agreement in his capacity as such and in due
course would sign the transfer documents, also in such capacity.
◆ The Conveyancer will need to obtain a Section 42(2) endorsement from the
Master on the original Power of Attorney to pass transfer, to confirm the Master’s
approval.
◆ The costs of the transfer, including transfer duty, would be payable by the
Purchaser.
◆ The deceased estate would carry the costs of obtaining rates and levy clearance
certificates valid until after registration, and of cancelling any bonds registered
over the property.
◆ Where the Executor sells the immovable property during the administration of
the estate to a third-party purchaser, the value of such property may increase or
decrease between the date of death and the date of sale, which may have capital
gains tax implications for the estate.
◆ These CGT implications are discussed in more detail below.

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