6 Ways To Reduce The Taxes Of A Deceased Person In South Africa

There are several ways to reduce the taxes associated with estate administration. These include:

1. Review the will: Review the will to ensure it is structured to minimise taxes. For example, consider using trusts or other tax-efficient structures.
2. Take advantage of tax exemptions: Certain tax exemptions can be applied to estates, such as the primary residence and certain assets. Make sure to take advantage of these exemptions when applicable.
3. Use tax-efficient investments: Consider using tax-efficient investments, such as those exempt from capital gains or dividends tax, to minimise the tax impact on the beneficiaries.
4. Review the estate’s assets: Review the assets and ensure that they are structured in a way that minimises taxes. For example, consider transferring assets to beneficiaries before death.
5. Keep good records: Keep detailed and accurate records of all transactions related to the estate, as this will make it easier to calculate and pay the taxes owed.
6. Seek professional advice: It is advisable to seek professional advice from a tax attorney or accountant to ensure that you take advantage of all available tax savings opportunities.

It’s important to note that the South African Revenue Service (SARS) has the right to review and audit an estate, and failure to pay taxes can result in penalties and interest. Therefore, it is crucial to ensure that taxes are calculated and paid correctly and in a timely manner.

Consult Julies Attorneys’ deceased estate lawyers in Johannesburg for legal advice on the specific circumstances of your case.