Determining the estate duty liability in your estate is a critical part of the planning process as it allows the estate planner to put mechanisms in place to address any shortfalls that may exist, thereby ensuring that your loved ones receive the full inheritance intended for them.
That said, understanding what assets fall within the definition of property, and what deductions are allowable, is key to determining your estate’s net value. Further, understanding the extent to which your matrimonial property regime impacts these calculations is key to getting your numbers right. In terms of Section 3 of the Act, estate duty is calculated on the value of all your property, and this includes movable and immovable property, as well as corporeal and incorporeal property.
Having said that, keep in mind that bequeathing assets to your surviving spouse has the effect of lowering the value of your estate while increasing the value of theirs. It is therefore important to ensure that you have estate plans developed for each of you as the first-dying spouse so that you fully understand the estate duty implications in each of your estates.