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However, should the spouses have substantial estates, such that the surviving
spouse would not require the additional R3,5 million worth of assets, it is still
preferable to bequeath this amount away from the survivor upon the death of the
first dying, as it would otherwise increase the future growth of the surviving spouse’s
estate, and consequently increase estate duty liability in the survivor’s estate.
This list is not exhaustive. Due to the limitations in scope of this guide, only the
most pertinent allowable deductions have been expanded upon. Detail on other
allowable deductions such as limited interests received as a gift, improvements
made by beneficiaries, improvements to property subject to limited interest, accrual
claims (by surviving spouse against deceased estate), books and works of art lent
to the state, limited interests created by a predeceased spouse and so on, have
not been detailed, and it is advisable to consult with your professional adviser for
further information on these.
Rebate for rapid succession
There is relief in the case of the same property being included in the estates of
taxpayers dying within 10 years of each other. The deduction is calculated on a
sliding scale varying from 100% where the taxpayers die within 2 years of each
other and 20% where the deaths are within 8 to 10 years of each other.
Valuing the deceased estate: Making an estimate of estate duty liability
n Estimate the value of the estate planner’s estate for estate duty purposes.

Life assurance for estate duty
n When ascertaining the liquidity requirements of an estate, the estate planner
must take into account estate duty liability.
n Life assurance to cover estate duty liability and thus meet liquidity needs
of the estate may be an option. The estate planner must reckon in to the
calculation the fact that estate duty will also normally be leviable on the
assurance proceeds themselves.
n Another strategy for spouses would be to take out joint assurance to cover
estate duty liability which pays out on the death of the last-dying spouse or
on simultaneous death.

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