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u Costs of administration and liquidation, and expenses incurred during
the administration of the estate
» Includes executor’s remuneration, Master’s fees, costs of transferring
assets (conveyancing fees), and costs of advertising the estate.
u Foreign assets and rights
» The general rule is that foreign assets and rights of a South African
resident, wherever situate, are included in his estate as assets.
» However, the value thereof can be deducted for estate duty purposes
where such foreign property was acquired before the deceased
became ordinarily resident in South Africa for the first time, or was
acquired by way of donation or inheritance from a non-resident, after
the donee became ordinarily resident in South Africa for the first time,
(provided that the donor or testator was not ordinarily resident in
South Africa at the time of the donation or death). The amount of any
profits or proceeds of any such property is also deductable.
u Debts and liabilities due to non-residents
» Debts and liabilities due to non-residents are deductible, but only to
the extent that such debts exceed the value of the deceased’s assets
situated outside South Africa which have not been included in the
dutiable estate.
u Bequests to certain public benefit organisations
» Where property is bequeathed to a public benefit organisation or
public welfare organisation, which is exempt from income tax, or to
the State or any local authority within South Africa, the value of such
property will be able to be deducted for estate duty purposes.
u Property accruing to a surviving spouse [Section 4(q)]
» This includes so much of the value of any property included in the
estate that has not already been allowed as a deduction, and accrues
to a surviving spouse.
» The phrase “accrues to a surviving spouse” means that it is not limited
only to property bequeathed to the spouse in the deceased’s Will,
but any other property that accrues to the surviving spouse on the
deceased’s death, such as the proceeds of life insurance payable to the
spouse as beneficiary, or any annuities that may accrue to the surviving
spouse.

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