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Estates, Out of Community of Property, In Community of Property - Coggle…
Estates
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Deemed Property
1) Life Insurance Policies
Proceeds
Less: Premiums Paid
Plus: 6% Interest/yr on premiums
Amount Included in Property
Excluded
-Policy payable ito pre-nup to surviving spouse/child
-Policy taken out my fellow SH of deceased to purchase deceased's SH (Only if deceased didn't pay premiums)
-Policy NOT taken out at insistence of deceased AND, no premiums paid by deceased, AND proceeds not paid to relative
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3) Claims for Accrual Against Spouse
:beer_mugs: R100 --> R200 --> R100 --> R150(Property)
:champagne: R0 ---> R400 ---> R400 ---> R150(Deduction)
Calc= R400-R100 = R300/2 = R150
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Overview
1) The Deceased
-From beginning of the year till date of death
-Rebates apportioned for DAYS
-Deemed disposal of all assets for CGT purposes at date of death @ MV (R300k exclusion)
2) The Deceased Estate
-Tax payable on income derived between death & end of year is due by estate
-Taxed at NP Rates
-No primary, secondary or tertiary rebates
-Deceased & deceased estate = same person for s12T
-From date of death to 28 Feb, then until estate is wound up
3) Estate Duty
-Levied on all property of person
-Will either pay ED or DT, not both
-20% on amounts below R30m
-25% on amounts above R30m
Payable on Dutiable Amount of estate
Calculating Estate Duty
Property
Deemed Property
Gross Value of Property
Less: Deductions
Net Value of Estate
Less: Abatements
Dutiable Estate
Property (both spouses joint)
Deemed Property (both spouses joint)
Gross Value of Property
Less: Deductions (joint property ONLY)
Net Mix of Estates
Less: Property iro Individual Spouses Estate
Value of Joint Estate
Deceased's 50%
Plus: Property of Deceased (excl. from joint estate)
Less: Deductions (Deceased estate ONLY)
Net Value Deceased Estate
Less: Abatements
Dutiable Estate
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