Estate Planning South Africa
Bizztax Accountants provides structured estate planning services to help South African individuals and families minimise estate duty, protect their assets and ensure their wishes are carried out after death.
What is estate planning?
Estate planning is the process of arranging your financial affairs to ensure that your assets are distributed according to your wishes after death, while minimising the taxes and costs associated with your estate. In South Africa, this includes drafting a valid will, planning for estate duty, capital gains tax on death, and ensuring that your beneficiaries — including minor children and dependants — are adequately provided for.
Who needs estate planning?
Estate planning is important for anyone with assets — property, investments, a business, retirement savings or life insurance. It is particularly important for business owners (to ensure business continuity), married couples (to maximise the estate duty abatement), parents of minor children (to appoint guardians and establish testamentary trusts), and anyone with significant assets or complex family circumstances.
Our Estate Planning Services
Estate Duty Planning
We advise on strategies to minimise estate duty, including the use of the R3.5 million abatement, the spousal bequest exemption, donations during your lifetime, and the use of trusts. We calculate your estimated estate duty liability and recommend appropriate planning strategies.
Will Drafting and Review
We draft a legally valid will that reflects your wishes and minimises the tax consequences of your estate. We also review existing wills to ensure they remain appropriate as your circumstances change.
Trust Planning
We advise on the use of inter vivos trusts and testamentary trusts as estate planning tools. A trust can protect assets from estate duty, provide for minor children or dependants, and ensure business continuity. We advise on the appropriate trust structure for your circumstances.
Life Insurance and Retirement Planning
Life insurance and retirement annuities play an important role in estate planning. Retirement annuity proceeds are excluded from your estate for estate duty purposes. We advise on the appropriate use of life insurance and retirement products as part of your overall estate plan.
Frequently Asked Questions
Common questions about estate planning and estate duty in South Africa.
What is the estate duty abatement in South Africa?
The estate duty abatement is R3.5 million per person. This means the first R3.5 million of your dutiable estate is exempt from estate duty. A surviving spouse can also inherit the unused portion of the deceased spouse's abatement, effectively giving a married couple a combined abatement of R7 million.
Does my spouse inherit my estate free of estate duty?
Assets bequeathed to a surviving spouse are generally exempt from estate duty under the spousal bequest exemption. However, estate duty will be payable when the surviving spouse's estate is wound up. Proper estate planning can ensure the combined estate duty liability is minimised.
What is capital gains tax on death in South Africa?
On death, a person is deemed to have disposed of all their assets at market value. Capital gains tax (CGT) is payable on the difference between the market value and the base cost of each asset. The first R300 000 of capital gains in the year of death is excluded. CGT is a significant consideration in estate planning, particularly for property and investment portfolios.
Should I put my assets in a trust to avoid estate duty?
A trust can be an effective estate planning tool, but it is not appropriate for everyone. Assets transferred to a trust are excluded from your estate for estate duty purposes, but the transfer may trigger capital gains tax and donations tax. The trust must be properly structured and administered. Bizztax advises on whether a trust is appropriate for your circumstances.
Related services
Plan your estate with Bizztax
Contact Bizztax Accountants for estate planning advice, will drafting and estate duty planning across South Africa.