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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 nett estate is in excess of R3,5 million.
It is charged at the rate of 20%. Currently, SARS is responsible for collecting
the Estate Duty of a deceased person.
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
certificate or death notice.
document of the deceased.
of Executorship (J238) (if applicable).
of Authority (J170) (in cases where the estate is less than R250 000).
copy of the executor’s identity document.
of attorney(if applicable).
name, address and contact details of the executoror
last Will and Testament of the deceased.
- An inventory
of the deceased’s assets.
- The liquidation
and distribution accounts (if available).
These documents may be sent to the relevant Centralised
Processing Centre 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
- After the date of death of a person, a new
taxable entity comes into existence – the “estate”.
- The assets of the deceased will be held by the
estate until the liquidation and distribution account has lain for inspection
and become final under section 35(12) of the Administration of Estates Act
after which the assets will be either handed over to the heirs or delivered to
the trustee of a trust estate.
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)