Page 55 - Profmark_Estate_Planning_Guide_2025

Capital gains tax and the deceased
n At death, capital gains tax is activated through a deemed disposal whereby
the deceased is deemed to have disposed of all his assets to his estate, at
market value at the time of death.
n Assets bequeathed to a surviving spouse do not incur capital gains tax as
they are subject to roll-over relief.
n The R300,000 exemption will apply to disposals made to the deceased
estate.
n The exclusion for primary residence may apply.
n Therefore, where an estate consists of a primary residence, and personal use
assets, no capital gains tax may be payable.
n Under most circumstances, although capital gains tax may be paid at the
death of the deceased, no further capital gains tax will be payable when an
heir, legatee or trustee receives an asset from the deceased estate.
Deceased Deceased Estate Beneficiary

Deceased estate At distribution to heir,
acquires asset for a legatee or trustee of
base cost equal to a trust, the deceased
market value at time estate is deemed
of death to dispose of asset
for proceeds equal
to base cost of the
deceased estate. The
heir, legatee or trustee
shall be treated as
having acquired the
asset for a base cost
equal to the base cost
of the deceased estate

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