Taxation: Estate Duty Summary
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Siwe
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ESTATE DUTY
Administration of a Deceased Estate
1. Interviews
2. Report estate
3. Open files
4. Letters to debtors & creditors
5. Valuations
6. Income tax return
7. Estate bank account
8. Pay debts
9. Prepare liqudation & distribution account
10. Pay master's & executor's fees
11. Pay inheritances
12. File estate as complete
Estate Duty is Applicable to
Resident: world wide assets are included
Non-resident: only SA source assets are included
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Who is liable?
Executor
Executor can recover from beneficiaries
annuities, usufructs, fiduciary interests
life insurance policies
donation mortis causa
Estate duty can be apportioned between
beneficiaries
value received / net estate x estate duty
Link with Previous Topics
Income tax
• stays the same
• apportion income, deductions and rebates up until date
of death
• amount due to SARS = liability in the estate
• amount due by SARS = asset in the estate
Capital gains tax
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• include all assets sold up until date of death
• include deemed sale of assets to estate at mv on date of
death
• include distribution / sale of assets to beneficiaries /
other
Donations tax
• Liable up until date of death
Value added tax
Estate Duty Calculation
Property
+ Deemed property
= Gross estate
- Deductions
= Net estate
- Rebates
= Dutiable amount
Estate duty ( x 20% )
Property
written by:
Siwe
The study-notes marketplace
Buy and sell all your summaries, notes, theses, essays, papers, cases, manuals, researches, and
many more...
www.stuvia.com
, Stuvia.com - The study-notes marketplace
ESTATE DUTY
Administration of a Deceased Estate
1. Interviews
2. Report estate
3. Open files
4. Letters to debtors & creditors
5. Valuations
6. Income tax return
7. Estate bank account
8. Pay debts
9. Prepare liqudation & distribution account
10. Pay master's & executor's fees
11. Pay inheritances
12. File estate as complete
Estate Duty is Applicable to
Resident: world wide assets are included
Non-resident: only SA source assets are included
, Stuvia.com - The study-notes marketplace
Who is liable?
Executor
Executor can recover from beneficiaries
annuities, usufructs, fiduciary interests
life insurance policies
donation mortis causa
Estate duty can be apportioned between
beneficiaries
value received / net estate x estate duty
Link with Previous Topics
Income tax
• stays the same
• apportion income, deductions and rebates up until date
of death
• amount due to SARS = liability in the estate
• amount due by SARS = asset in the estate
Capital gains tax
, Stuvia.com - The study-notes marketplace
• include all assets sold up until date of death
• include deemed sale of assets to estate at mv on date of
death
• include distribution / sale of assets to beneficiaries /
other
Donations tax
• Liable up until date of death
Value added tax
Estate Duty Calculation
Property
+ Deemed property
= Gross estate
- Deductions
= Net estate
- Rebates
= Dutiable amount
Estate duty ( x 20% )
Property
