EDA recipe reverse deck

Question 1

Actual value of sec 3(2) property

Answer 1

After step 5 you get?

Question 2

Funeral, tombstone and deathbed expenses

Answer 2

Step 7: Section 4(a)

Question 3

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

Answer 3

Step 3(ii)

Question 4

Policies on life of deceased taken out by partners/shareholders/directors - B2 Policy

Answer 4

Step 6A(iii)

Question 5

Beneficiaries who receive benefits under no 5 and 6 that are NOT deductible ito sec 4

Answer 5

Who is liable to contribute towards the Estate Duty Payable?

Question 6

Less allowable deductions ito section 4

Answer 6

Step 7

Question 7

LESS massing out of community or single person: value of survivor’s share

Answer 7

Step 4B

Question 8

Key man policies (if deceased was an expert in his field and the business took out a policy on his life) - B4 policy

Answer 8

Step 6A(ii)

Question 9

Policies ceded/donated to a spouse/child ito a registered ANC/PNC (A1 policy)

Answer 9

Step 6A(i)

Question 10

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

Answer 10

Step 5

Question 11

Estate duty payable @20% on duitable amount R _____

DO NOT LEAVE OUT EVEN IF NIL

Answer 11

Step 9

Question 12

ADD property deemed to be property ito sec3(3) (property the deceased did not enjoy while he/she was alive)

Answer 12

Step 6

Question 13

Liabilities (claims against the estate)

Massing= survivor’s share NOT to be taken into account

Answer 13

Step 7: Section 4(b)

Question 14

Immovable property
Farm: (bona fide farming/farming operations/bequeathed/let)
LESS: 30% on sworn valuation or on fair market value disclosed in Liq account

Answer 14

Step 3(i)

Question 15

Net value of estate

Answer 15

After step 7 you get?

Question 16

Adjustments of assets in liquidation account

Answer 16

Step 3

Question 17

1. A surviving spouse under sec 4(q)
2. organisations in RSA sec 4(h)

Answer 17

Who will NEVER be liable to contribute towards the estate duty payable?

Question 18

Accrual claim by deceased disclosed as an asset in liquidation account

Answer 18

6(b)

Question 19

Administration expenses

Massing= survivor’s share NOT to be taken into account

Answer 19

Step 7: Section 4(c)

Question 20

Foreign assets

Answer 20

Step 7: Section 4(e)

Question 21

Accrual claim by Surviving Spouse

(accrual disclosed as a liability in liquidation account)

Answer 21

Step 7: Section 4(IA)

Question 22

Accural claim by deceased disclosed as an asset in liquidation account - deceased did NOT enjoy the accrual claim

Answer 22

Step 4A(ii)

Question 23

Property in terms of sec 3(2) as per liquidation account = gross value of assets - property enjoyed by the deceased

Answer 23

Step 1

Question 24

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)

Answer 24

Step 4A(i)

Question 25

Answer 25

What is the formula to calculate the apportionment

Question 26

LESS Deemed property ito section 3(3) in liquidation account disclosed as claims in favour of the estate

Answer 26

Step 4A

Question 27

• 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

Answer 27

Step 6A

Question 28

Add foreign assets

Answer 28

Step 2

Question 29

LESS: primary rebate ito sec 4A = 3 500 000 this gives you the duitable amount

Answer 29

Step 8

Question 30

Bequests/donations:

1. to public benefit organisations in the RSA
   OR
2. the state
   OR
3. any municipality/metro

Liquidation account =
Question paper = CASH:
Step 5 and Step 6 =

Answer 30

Step 7: Section 4(h)

Question 31

Benefits received by surviving spouse
Liquidation account =
Question paper = CASH:
Step 5 and step 6=

Farm 70%

Answer 31

Step 7: Section 4(q)

Question 32

GROSS VALUE OF ESTATE

Answer 32

After step 6 you get?