Estate Living Digital Publication Issue 9 September 2015 | Page 48

Jeremy Burman, a director of Private
Client Financial Services, says that it
should be further noted that, on death,
a person is deemed to have disposed
of all their assets, for the purposes of
calculating whether or not there will be
any capital gains tax liabilities

Outstanding bonds, hire purchase agreements,
credit card balances, overdraft amounts, last illness
expenses, funeral costs, household expenses and
the costs of administrating the estate are taken into
account when arriving at the net estate.”

INVESTMENT SAVVY

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From the net estate figure, one is allowed to deduct
various rebates to come to the dutiable estate
position and according to Knott, these rebates
include a primary figure of R 3.5 million applicable in
all instances, plus any amount accruing to a surviving
spouse, either in terms of the will or as a maintenance
claim. The value of any property abroad acquired
either before the deceased became resident there
or one that he or she inherited from a non-resident,
and the value of any bequest to a government or
municipal body or to an exempt public benefit
organisation should also be taken into account when
arriving at the dutiable estate.

borne by the beneficiaries of a life insurance policy
payable directly to them. Nonetheless the estate has
the right to recover the pro rata portion from the
policy beneficiaries.” Jeremy Burman, a director of
Private Client Financial Services, says that on death, a
person is deemed to have disposed of all their assets,
for the purposes of calculating whether or not there
will be any capital gains tax liabilities. “Assets left to
a surviving spouse will be exempt, but others may
attract an additional tax on death,” explains Burman.
Both Burman and Knott advise that one needs to
be aware of what the capital gains tax and estate
duty liabilities are likely to be so as to ensure that
the estate has adequate liquidity to avoid the forced
sale of assets. “It is vital to consult with a financial
advisor to ensure the smooth running of an estate,”
concludes Knott.
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“The dutiable estate will attract estate duty at a rate
of 20% and must be settled with the Commissioner
for Inland Revenue by the anniversary of death, but
within 30 days of assessment if assessed earlier and
it could be that a portion of the estate duty must be

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