Page 48 - Bespoke EPG 2017 Digital

■■ Payments by such funds (pension, retirement annuity, provident funds)
usually consist of two components – a lump sum payment on death and an
annuity afterwards. The lump sum component used to be subject to estate
duty. However as from 1 January 2009, no amount received from such a
fund will be included in the estate of the deceased for estate duty purposes.
However, so much of all the contributions made by the deceased in
consequence of membership or past membership of any retirement annuity
fund, that has not been deducted upon death, will be subject to Estate Duty.

Donations at date of death
■■ 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)
■■ 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)
■■ 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

■■ The dutiable value of the estate can be considerably reduced by claiming all
the deductions for which the estate planner qualifies.

■■ Some of the most important allowable deductions are:
◆◆ The cost of funeral, tombstone and death bed expenses

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