Page 37 - Nexia SAB&T Property and Tax Guide 2025

ESTATE DUTY

The general rule is that if the taxpayer is ordinarily resident in the Republic at the time of
death, all of his assets (including deemed property), wherever they are situated, will be
included in the gross value of his estate for the determination of duty payable thereon.
Estate duty is levied at 20% on the first R30 million of the dutiable estate. Estate duty
will be levied at 25% on the dutiable estate in excess of R30 million. Estate duty is
levied on the South African property of non-residents.
Deemed property includes insurance policies on the life of the deceased, claims in terms
of the matrimonial property act as well as property that the deceased was competent to
dispose of immediately prior to his death.
The most important deductions are:
◆ Debts due at date of death
◆ Bequests to public benefit organisations
◆ Bequests to a surviving spouse
The Act allows for a R3.5 million estate duty abatement. This abatement could rollover
from the deceased to a surviving spouse, so that the surviving spouse can use a
R7 million abatement on death. The portability of the deduction will apply to the extent
that the first dying spouse did not use the whole abatement.
There is relief from Estate Duty in the case of the same property being included in the
estates of taxpayers dying within ten years of each other. The deduction is calculated on
a sliding scale varying from 100% where the taxpayers die within two years of each other
and 20% where the deaths are within eight to ten years of each other.
Executor’s remuneration
An executor is entitled to the following remuneration:
◆ The remuneration fixed by deceased in the will, or
◆ 3.5% of gross assets
◆ 6% on income accrued and collected from date of death
Executor’s remuneration is subject to VAT where the executor is registered as a vendor.

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