Estate Duty: 

When we die, the Executor appointed by the Master of the High Court to process our Deceased Estate, ascertains and details all our assets and liabilities. These are all detailed in the Liquidation and Distribution Account and sent to the Master of the High Court for approval.

However, if the net amount for distribution to the heirs is worth more than R3,500,000 then Estate Duty will be payable, the exception being if there is a surviving spouse when the total amount bequeathed to the surviving spouse is non-dutiable.

The problem arises when the deceased does not have a surviving spouse. Then any amount over the allowable amount of R3,500,000 is dutiable at the rate of 20%.

So if the net estate is worth R9,500,000 the non-dutiable amount of R3,500,000 is subtracted to achieve a dutiable amount of R6,000,000. At the rate of 20% the amount of duty payable to the SA Revenue Service (SARS) will be R1,200,000.