Preserve Your Legacy and Reduce Tax Exposure
How Taxes Can Erode Your Legacy
Many people are unaware of the significant tax implications upon death. Estate Duty and Capital Gains Tax can force your heirs to sell precious assets, like the family home or business, simply to pay the tax bill. Proactive planning is not about tax evasion; it’s about legally and intelligently structuring your affairs to minimize this liability.
Without proper planning, a large portion of your estate could be lost to taxes, estate duty, or administration costs. We help you design a structure that complies with the Estate Duty Act (No. 45 of 1955) while ensuring your assets pass efficiently to your heirs.
We Help You:
- Holistic Estate Analysis: We conduct a thorough review of your entire asset portfolio in collaboration with your financial advisors.
- Structuring for Tax Efficiency: We advise on various legal structures to legitimately reduce estate duty, such as the use of trusts, life insurance, and strategic bequests.
- Business Succession Planning: We assist business owners in creating a tax-efficient plan for the transfer of their business interests.
- Use of Trusts: A well-structured family trust can be a highly effective tool for pegging the value of your estate and protecting asset growth from future estate duty.
- Gifting and Donations Strategies: We provide advice on how to effectively use the annual donations tax exemption to reduce the size of your estate over time.
- Establishing Trusts – Transfer assets into trusts to reduce personal estate value.
Read About Trust Formation → - Planned Donations – Use annual exemptions under the Donations Tax Act to reduce estate growth.
- Life Policies & Beneficiary Nomination – Structure policies to pay directly to beneficiaries.
- Asset Valuation & Timing – Manage asset sales and transfers to reduce CGT at death.
- Cross-Border Structuring – For clients with foreign assets, plan for double taxation avoidance.
- Abatement: R3.5 million deduction before estate duty applies.
- Spousal Deduction: Assets passing to a spouse are exempt.
- Trusts & Donations: Can reduce exposure if structured correctly.
- Business Ownership: Requires succession and valuation planning.
- Estate Duty: A tax of 20-25% on the dutiable value of your estate above the current R3.5 million exemption.
- Capital Gains Tax (CGT): Tax triggered on the growth of your assets from their base cost to their market value at your death.
- Donations Tax: A flat-rate tax on any donation exceeding the annual exemption amount.
- Having No Liquidity in Your Estate: Not having enough cash available (e.g., through a life insurance policy) to pay the taxes can force your executor to sell assets you wanted your heirs to keep.
- Overlooking Capital Gains Tax: Forgetting that capital gains tax is triggered on death is a common and costly oversight.
- Leaving Everything to a Spouse: While bequests to a surviving spouse are exempt from estate duty, this often just delays the problem, potentially creating a much larger tax liability when the second spouse passes away.
- Making Large Donations Without Advice: SARS scrutinises trust and loan accounts. Making large gifts to family during your lifetime without considering the implications of Donations Tax can be an expensive mistake.
- No Estate Planning – Results in unnecessary estate duty and legal costs.
- Improperly Structured Trusts – May attract income tax and compliance penalties.
- Ignoring Mediation – The Gauteng High Court’s directive encourages mediation before estate tax disputes escalate.
Learn About Mediation for Estate Disputes →
- Coordinated estate and tax reviews.
- Drafting compliant trust deeds and wills.
- Preparing documentation for SARS and the Master’s Office.
- Ensuring alignment with current tax laws and rates.
- Learn About Deceased Estate Administration →
- Executor and SARS disputes over valuations
- Beneficiary claims regarding estate tax liabilities
- Family disputes on distribution vs tax efficiency
Read About Mediation & Arbitration →
- Strategic Focus: We move beyond standard will drafting to provide high-level strategic advice focused on long-term wealth preservation.
- Collaborative Network: We pride ourselves on working closely with your financial planner and accountant to ensure your legal and financial plans are perfectly aligned.
- Up-to-Date Knowledge: Tax laws change. We stay at the forefront of any developments to ensure your estate plan remains compliant and effective.
- A Long-Term View: Our planning is designed to provide security and benefits not just for your immediate heirs, but for future generations to come.
- Comprehensive Expertise: Estate duty, trusts, wills, and tax compliance under one roof.
- Collaboration: Work seamlessly with accountants and fiduciaries.
- Mediation Accreditation: Qualified under the Gauteng directive for estate tax disputes.
- Tailored Solutions: Personalised strategies that protect and preserve wealth.
Clear Answers • Compassionate Guidance
Estate Duty & Tax Planning FAQs
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