Deducting Income Tax and CGT for Estate Duty
Is subjecting taxpayers to estate duty on post-death asset growth appropriate? IN 1789 Benjamin Franklin said that “in this world nothing can be said to be certain, except death and taxes”. He was right about death—but anyone who has had to interpret our tax laws would know that the task is fraught with uncertainty. This […]
HOW TRUSTS PRESERVE GENERATIONAL WEALTH
The estate duty savings are compounded over several generations. Articles on trusts are often aimed at settlors or donors to highlight the benefit of trusts and the role they play in estate planning at the ‘first-generation’ level. In this article, the author aims to illustrate to second-generation beneficiaries the effect of the decisions their parents […]
WHAT IS THE COST OF MY ESTATE DUTY?
In terms of the stipulations of section 4 of the Estate Duty Act No 45 of 1955 certain deductions from the value of an estate are allowed in order to determine the final value of the estate which will be subject to estate duty. The following two rebates are the most well-known: Section 4(q) – […]
DONATIONS TAX
Donations tax is levied in terms of section 54 of the Income Tax Act, 58 of 1962 (‘Income Tax Act’). The rate of tax is currently at 20%, and is levied on the value of any property donated by South African tax residents. The tax is levied on the donor, although the Income Tax Act […]
WILL YOUR TRUST STAND UP TO SCRUTINY?
There are many benefits of having a family Trust, but most importantly they provide protection of assets from creditors, a shield from Estate Duty and control over preservation of the assets into the future. In order to ensure that these benefits are intact and maintained it is important to ensure that the administrative and authoritative […]