When a person dies, they leave behind an estate which includes everything they own. Estate Duty is payable on the estate of every person who dies and whose net estate is in excess of R3,5 million. It is charged at the rate of 20%. Should your Estate be R30 million or more the Estate duty will be 25%.
How does an estate get reported to SARS?
Even if Estate Duty does not apply to you, it is still necessary to inform SARS that the person is deceased. It is recommended that you consult with a legal expert when going through such as process.
Copies of the following documents must be sent to SARS:
These documents may be sent to the relevant Centralised Processing Centres that is closest to the Master of the High Court where the estate is being administered.
How does Estate Duty work in relation to an inheritance?
All income received or accrued before the deceased’s death is taxable in the hands of the deceased up until the date of death, and will be administered by the executor or administrator acting as the deceased’s representative taxpayer.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)