Page 38 - Robin Twaddle PTG 2017 Digital

YOUR WILL & YOUR PROPERTY

◆◆ If you bequeath your fixed property to your surviving spouse, then no tax is payable, as
all bequests to spouses are exempt from estate duty and/or CGT. No transfer duty is
payabe on a bequest of fixed property to an heir/legatee.

◆◆ If the value of your estate is more than R3,5 million, estate duty will become payable
on the balance in excess of R3,5 million. Sufficient cash should be made available to
pay this duty in order to avoid selling any fixed property.

◆◆ If your property is subject to a mortgage bond, and you leave your property as a
specific bequest, you may wish to make the bequest subject to the provision that your
legatee takes over the bond liability. Alternatively, you may wish to secure the bond by
life assurance, the proceeds of which would clear the debt on your death.

◆◆ If your children are still minors, (under 18 and unmarried), it is advisable to set up a
testamentary trust in your will, which would come into effect should both parents pass
away before they reach majority.

◆◆ If you bequeath your fixed property to a number of heirs in equal shares, this may give
rise to impracticalities due to the indivisibility of the bequest, and may give rise to a
redistribution agreement being drawn up between your heirs.

◆◆ There may be specific provisions in your antenuptial contract in regard to your fixed
property, which may override your wishes in terms of your will.

◆◆ There is a portable R3.5 million estate duty deduction between spouses.
◆◆ Where agricultural property is bequeathed, the testator needs to be aware of

Section 3 of the Subdivision of Agricultural Land Act, which prevents the subdivision
of agricultural land, and such land being registered in undivided shares in more
than one person’s name. This is especially relevant when the testator is considering
bequeathing agricultural land to more than one beneficiary.

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