Tax consequences of a deceased estate
Duration: 1 hour
Price: R49.00
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Tax consequences of a deceased estate
This webinar on demand is part of a series of webinars. Click here to read more
Overview
- Understanding the special rules that apply when one spouse dies in a marriage based on community of property.
- Calculating death as a deemed disposal event for capital and ordinary event with special rules of relief for transfers to the deceased’s spouse
- Understanding that beneficiaries receive the deceased’s assets without further tax consequence and that these inherited assets have a base cost of fair market value as at date of death for the deceased when obtained by the beneficiaries via inheritance.
- Understanding the policy rationale of the Estate Duty as an additional charge on the deceased and its basic operation
- Understanding the tax base for the Estate Duty being based on the deceased’s overall net value upon death (as opposed to the deemed disposal event triggered for purposes of the Income Tax Act)
- Identifying property legally outside the deceased’s estate that is added back to the estate for Estate Duty purposes.
- Identifying the special rules associated with life policies.
- Identifying how the estate of two spouses may be combined in terms of the overall charge and relief measures even if the two spouses were married out of community of property.
- Identifying the range of available deductions (offsets) against the estate
- Identifying funeral and death-bed deductions (offsets) against the estate
- Identifying loans as offsets against the estate
- Identifying offsets against the estate for charitable bequests
- Identifying the relief mechanism for transfers between spouses as being a deemed deduction that eliminates estate duty.
- Identifying the standard abatement (R3.5 million in 2019) as an offset eliminating tax for most lower- and middle-income households and diagnostic awareness how the abatements of marriage couples can be combined.
- Identifying the special rules for marriages in community of property as these rules impact estate duty
Short course content (self-paced)
- Tax consequences of a deceased estate
Outcomes of Topics
- Understand the principles of Donations Tax and Estate Duty
- Calculate Donations tax and Estate duty
- Identify exceptions from Donations tax