I have a client that has been incapacitated by a medical operation for the last ten years. His dad is the duly appointed Curator. The legal case took many years but finally in 2018 my client received a payment from the medical practitioners insurance. Aft
Important:
This answer is based on tax law year ending 28 February 2019.
Answer:
The powers of an appointed curator bonis are limited to those powers which are granted by the Court. These powers may include:
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To sell any property belonging to your client;
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To carry on or discontinue any business or undertaking of his (if applicable);
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To invest his available funds (as was done);
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To apply any money towards his medical care and maintenance.
The curator bonis, once appointed will also be obliged to provide regular reports and updates to the Master of the High Court and must submit a detailed administration account to the Master at each financial year end, setting out the income received, expenditure incurred etc. The duties and powers of the curator bonis are therefore monitored by the Master and he/she is also obliged to provide security to the Master, as a guarantee that he/she will execute his/her duties properly.
It means that the income, the interest in this instance, actually accrues to the child and not to the curator. The expenses paid, is also paid by the child. The curator is in a sense the agent of the child. The child is then, in a sense, taxed on this income.
The cost to maintain the person will not qualify to be deducted – see section 23(a) of the Income Tax Act. To the extent that it is qualifying medical expenses, the section 6B rebate will be available to the child (for the expenses paid by the curator) and to the parent, if paid by the parent.