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July 2006
 
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EXECTRUST (Pty) Ltd
Proud sponsor of CANSA West Rand
Formerly Trustee Board (Pty) Ltd
Reg. No 1957/001017/07
Honesty Integrity Sincerity Trust Empathy

Ground Floor, Unit 1, Bruton Office Park, 18 Bruton Road, Bryanston 2021

Telephone: 011 875 4919 Fax: 086 500 8850

 
- Deceased Estate Specialists
- Trust Administration
- Curatorship Administration
- Wills consultation and preparation
- Tax Compliance
Email Patrick Barnard at :exectrust@iburst.co.za
Visit the website: www.exectrust.com

 

IS YOUR ESTATE DUTIABLE?


The Estate Duty Act, as amended, dictates the calculation and what assets/lumpsum benefits are to be taken into account when calculating the estate duty, at the same time, allowing for some abatements and allowable deductions.


Basically, in a marriage of two spouses, the first dying’s estate is not dutiable due to the fact that over and above the primary abatement of R1500 000, anything that the spouse inherits is also deducted from the net dutiable estate. The fact that the first dying spouse’s estate is not dutiable is dependant on the fact that the spouse inherits the total residue for distribution. I.e. the survivor of the two spouses is the sole heir.


You are probably aware of some of the Estate Planning techniques used in reducing or “pegging” the estate duty payable.


What follows, is a simple calculation that can be used by you in determining your approximate net dutiable estate. We cannot cater for each and every case in this calculation, but it will provide for very basic assistance :

Total assets : (Include investments, cars, furniture, etc) R
Less proceeds of all policies payable to your estate R
Less one half share if you are married in community of property R
Add total policies payable : (includes policies payable to third parties) R
Assets Subtotal
R
Total liabilities
R
Less one half share if you are married in community of property R
Liabilities Subtotal
R
Assets less liabilities
R
Less Primary abatement R1500 000  
Less inheritance due to surviving spouse R
Net dutiable estate is therefore
R
   
Estate Duty thereon is 20%.
 


For detailed calculations, kindly contact me.


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