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Donations at date of death
n Donations where the donee will not benefit until the death of the donor and
where the donation only materialises if the donor dies are not subject to
donations tax. These have to be included as an asset in the deceased estate
and are subject to estate duty.
Claims in terms of the Matrimonial Property Act (accrual claim)
n An accrual claim that the estate of a deceased has against the surviving
spouse is property deemed to be property in the deceased estate.
Property that the deceased was competent to dispose of immediately prior to
his death (Section 3(3)(d) of the Estate Duty Act)
n An example would be where the estate planner donates an asset to a trust,
and is both a trustee on the trust with total control over the trust assets,
and also a beneficiary. Although the asset is owned by the trust, the estate
planner may be deemed to be in control of the asset which may as a result
be included in his estate as deemed property for estate duty purposes.
D Deductions
n The dutiable value of the estate can be considerably reduced by claiming all
the deductions for which the estate planner qualifies.
n Some of the most important allowable deductions are:
u The cost of funeral, tombstone and death bed expenses
u Debts due at date of death to persons who have their ordinary
residence in South Africa
» To the extent to which these debts are to be settled from property
included in the estate.
» This includes the deceased’s income tax liability (which includes
capital gains tax) for the period up to death.
» It is important to note that the deduction is such that the liability
must be actually discharged before it is taken into account. Where
there is a bequest price obliging an heir to settle an amount in order
that he or she may inherit – for example an heir inherits fixed property
provided he or she pays the bond thereon, then the bond amount
(liability) will not be allowed as a deduction.

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