Money Marketing ran an article by FISA CEO Jan du Plessis on estate duty. Jan explains the key principles of estate duty and highlights what financial advisers should understand when helping clients plan their estates.
Estate duty is generally levied at 20% on the first R30 million of the dutiable estate and 25% on amounts above this threshold, after allowable deductions. Advisers must understand how an estate’s value is calculated, including property, investments and certain “deemed assets” such as life policies.
Various deductions may apply, including liabilities, administration costs and the spousal deduction, which can defer estate duty until the second death. Proper structuring of assets, beneficiary nominations and estate planning strategies can reduce unnecessary tax and ensure efficient wealth transfer.
Read here.