Estate Living Digital Publication Issue 9 September 2015 | Page 47

INVESTMENT SAVVY

Designing an Effective Will

Understanding
your Estate,
Estate Duty
and Taxes
There is sometimes confusion as to what actually
constitutes your estate after your death, for the
purposes of estate duty and how and on how this
amount is calculated and how quickly after your
death it must be settled.
David Knott of Private Client Trust, the fiduciary
services division of Private Client Holdings and a
member of the Fiduciary Institute of South Africa,
says that the Estate Duty Act 45 of 1955 is extremely
complex and advises that how one is married
influences the calculation. For the purposes of this
article, it is assumed that the person is married out
of community of property, with the matrimonial
property regime excluded. “All property that the
deceased was competent to dispose of, whether in

South Africa or abroad, will need to be taken into
account, including fixed property, movable property
such as motor vehicles, furniture and artwork,
investments such as stocks and shares, interests in
private companies, loan accounts, cash in the bank,
unpaid salaries and leave pay” explains Knott. “The
proceeds of any life insurances, payable to the estate
or to third parties, also needs to be identified, as well
as the surrender value of any life policy owned by the
deceased on the life of another,” continues Knott.
“Any usufructuary, fiduciary or like interest will need
to be valued, as will any goodwill, royalties, copyrights
and trademarks enjoyed by the deceased at the time
of death. From this, an asset total will be deducted
from all legitimate claims against the estate.