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Flashcards in Estate Duty And Donations Deck (11):

S57 donations by a company

If disposed of by instance of any person, treated as donation by that person


S57A Donation by spouses icop

If in joint estate, deemed equal share


S56 Exemptions

Donations to spouse because of nuptial contract
To current spouse
Mortis causa
Benefit pass on death
Withdraw in six months
Outside SA property
Contributions to the maintenance of anyone
Voluntary awards included in employees income
To trust
Same group


S56 2 casual gifts and annual exemptions

R10000 allowed, apportion if trade less than 12 months for cos
R100000 for natural persona
Must use in order of donations
Use to donate to trust each year


S56 value of donation

Usury the
12% of fmv is annual value x lesser of donor and usufructuary life expectancy


Est duty calculation

Deemed property
Less deductions
Equal net value
Less abatement


Estate duty property

Exclude SA pension fund benefit
Insurance less premiums paid by beneficiaries of policy +6% of premiums (half if married icop)
Exempt donations
Accrual under matrimonial property act
Property deceased competent to dispose


Estate duty deductions

Deathbed funeral, debts, admin, expenses to comply, certain foreign assets
Usufructuary right or annuity reverts to donor
Charitable bequest, improvements by beneficiaries
Improvements made by bare dominium which increased value, to extent increase value of usufruct. Calculate usufruct as if improvement never made
Claim of surviving spouse, books and art 30years borrowed
To surviving spouse but not if go through trust


Estate duty abatement

3.5 mil portable


Estate duty valuation of property

Usufructuary interest
12% fmv x pv life expectancy of beneficiary

If beneficiaries purchased bare dominium deduct cost of bare dominium plus 6% interest on cost
If bd holder gets full ownership value cannot be more than fmv of property at death less value of bd at acquisition

Annuity charged against property does not have to be paid to deceased anymore included over life of deceased or if continue pay life of that new person


S54 levy of donations tax

No tax of donations made by non residents