In terms of the executors account in the estate, if someone is a recipient of the annuity which was paid by his/her later family member, and the annuity was not charged upon property, then the recipient dies, the annuity is payable to karabo, recipient yo
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
Section 3(2), of the Estate Duty Act is relevant and reads as follows:
“Property” means any right in or to property, movable or immovable, corporeal or incorporeal, and includes -
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any fiduciary, usufructuary or other like interest in property (including a right to an annuity charged upon property) held by the deceased immediately prior to his death;
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any right to an annuity (other than a right to an annuity charged upon any property) enjoyed by the deceased immediately prior to his death which accrued to some other person on the death of the deceased, …
Because, in your instance, the annuity is not charged upon property, it would be section 3(2)(a) that applies. This accepts that the annuity is not payable by an approved pension or retirement annuity fund.
The section 4(m) deduction is then not applicable.
The "Recapitulation Statement" is a cash statement and will only reflect -
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the total of the items comprising cash or property reduced to cash;
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the total debts and charges appearing under the subheading "Liquidation Account" and any legacy payable in cash; and
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the cash deficiency, if any, and how such deficiency will be settled; …
The “details of the property included in every award and the reason for every award” is dealt with in liquidation and distribution account.
The principle, with regard to property not dealt with in the last will and testament, is that the deceased died intestate. The property will then have to be distributed according to the relevant laws of intestate succession.