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Death is a difficult and emotional subject to handle. While we can’t take away the pain, we can make the experience a little easier by helping you prepare for the practical realities that need to be in place.
A deceased estate refers to all the property, possessions and assets that legally belonged to a person who has died.
An inheritance is what a living person is legally given from the deceased person’s estate. Usually, the person who died would have written up a will that would list how they want to share out their possessions after they die.
There are three sets of laws in South Africa that relate to deceased estates and inheritances.
In South Africa, there is no tax payable by the heirs who get an inheritance.
Capital Gains Tax (CGT) is a tax paid from any profit made after selling an asset. It is not payable by those who receive an inheritance. However, the costs of Estate Duty – a percentage of the value of the estate that is legally due to the government, as well as CGT, are usually payable by the estate. This means the amount needed to pay these taxes will come out of the money left by the person who died.
Donations for individuals are subject to a Donations Tax of 20%, with an annual exemption of up to R100 000 of the value of all donations made during the tax year.
Donations between spouses are exempt from Donations Tax, as are donations made to certain public benefit organisations.
Visit the SARS website for full details. You will need the following documents:
Clearly, the ways in which taxes and the law affect death are complicated. At Legal&Tax, we have the legal and tax experts who will guide you through these details step-by-step, helping you move onto a path of healing and hope.