EDA recipe reverse deck Flashcards
Actual value of sec 3(2) property
After step 5 you get?
Funeral, tombstone and deathbed expenses
Step 7: Section 4(a)
Movable property
Shares in private company: (work on valuation by auditor and accepted by SARS)
LESS/ADD: difference between valuation by Auditor and the selling price thereof
LESS difference if SP is more than valuation
ADD difference if SP is less than valuation
Step 3(ii)
Policies on life of deceased taken out by partners/shareholders/directors - B2 Policy
Step 6A(iii)
Beneficiaries who receive benefits under no 5 and 6 that are NOT deductible ito sec 4
Who is liable to contribute towards the Estate Duty Payable?
Less allowable deductions ito section 4
Step 7
LESS massing out of community or single person: value of survivor’s share
Step 4B
Key man policies (if deceased was an expert in his field and the business took out a policy on his life) - B4 policy
Step 6A(ii)
Policies ceded/donated to a spouse/child ito a registered ANC/PNC (A1 policy)
Step 6A(i)
ADD limited interest enjoyed by deceased and passes on to someone else
market value X 12% X (Factor determined by age next birthday)
Fiduciary interest/usufruct
(Farm: remember to subtract 30% before doing calculation)
(FCH age @ DOD +1) - Table A to determine factor
If limited interest for fixed period use Table B
Step 5
Estate duty payable @20% on duitable amount R _____
DO NOT LEAVE OUT EVEN IF NIL
Step 9
ADD property deemed to be property ito sec3(3) (property the deceased did not enjoy while he/she was alive)
Step 6
Liabilities (claims against the estate)
Massing= survivor’s share NOT to be taken into account
Step 7: Section 4(b)
Immovable property
Farm: (bona fide farming/farming operations/bequeathed/let)
LESS: 30% on sworn valuation or on fair market value disclosed in Liq account
Step 3(i)
Net value of estate
After step 7 you get?
Adjustments of assets in liquidation account
Step 3
- A surviving spouse under sec 4(q)
- organisations in RSA sec 4(h)
Who will NEVER be liable to contribute towards the estate duty payable?
Accrual claim by deceased disclosed as an asset in liquidation account
6(b)
Administration expenses
Massing= survivor’s share NOT to be taken into account
Step 7: Section 4(c)
Foreign assets
Step 7: Section 4(e)
Accrual claim by Surviving Spouse
(accrual disclosed as a liability in liquidation account)
Step 7: Section 4(IA)
Accural claim by deceased disclosed as an asset in liquidation account - deceased did NOT enjoy the accrual claim
Step 4A(ii)
Property in terms of sec 3(2) as per liquidation account = gross value of assets - property enjoyed by the deceased
Step 1
All policies on life of deceased of which the maturity value are disclosed in liquidation account - because deceased did NOT enjoy the property (paid out to the estate)
Step 4A(i)
What is the formula to calculate the apportionment
LESS Deemed property ito section 3(3) in liquidation account disclosed as claims in favour of the estate
Step 4A
- All policies on life of the deceased of which the maturity value was paid out, even those paid to beneficiaries - because deceased did NOT not enjoy the maturity value
- EXCEPTIONS: policies on life of deceased excluded from estate duty
Step 6A
Add foreign assets
Step 2
LESS: primary rebate ito sec 4A = 3 500 000 this gives you the duitable amount
Step 8
Bequests/donations:
- to public benefit organisations in the RSA
OR - the state
OR - any municipality/metro
Liquidation account =
Question paper = CASH:
Step 5 and Step 6 =
Step 7: Section 4(h)
Benefits received by surviving spouse
Liquidation account =
Question paper = CASH:
Step 5 and step 6=
Farm 70%
Step 7: Section 4(q)
GROSS VALUE OF ESTATE
After step 6 you get?
