In South Africa, we are privileged not to have to pay inheritance tax on the benefits received from a deceased estate. In many countries such as the United Kingdom citizens must pay an inheritance tax of around 40% on an amount larger than £375,000. Only the new King, it seems, will escape such an obligation as a monarch is exempt by law from the tax.
But, before we can get excited, South Africa has an Estate Duty whereby the estate pays taxes. It is levied on the worldwide property of a natural person who is ordinarily resident in South Africa. 20% on the first R30m of the dutiable value of an estate, and 25% on the amount exceeding R30m.
However, it’s not all gloom. The Estate Duty Act was kind enough to allow certain deductions and rebates to allow tax benefits to the public.
It’s important to ask an experienced fiduciary specialist to assist you to ensure that your affairs are in order for when you die and that the expected estate duties will be structured favourably.
Ariza Vermeulen | FPSA
Senior Associate
