Many South Africans assume estate duty is only a concern for the very wealthy, but property values, life insurance payouts and retirement savings can add up to R3.5 million more easily than expected, especially once a home and a paid-up pension are combined. The spousal rollover is also frequently missed, because it isn't automatic — an executor has to specifically claim it in the estate's liquidation and distribution account.
Source: SARS
Frequently Asked Questions
Do assets left to a surviving spouse attract estate duty immediately?
No — bequests to a surviving spouse are generally exempt from estate duty at the first death, deferring the tax until the second spouse's estate is wound up.
Is the R3.5 million abatement automatic?
Yes, for the deceased's own estate — but claiming the spousal rollover of an unused abatement requires the executor to apply for it specifically.
Does estate duty apply on top of other taxes on death?
It can — capital gains tax on the deemed disposal of assets at death, and donations tax on gifts made before death, are separate charges that can apply alongside estate duty.