Wills: The impact of the Davis Tax Committee proposals on wills
“The impact of the Davis Tax Committee proposals on wills
The Estate Duty Act, 45 of 1955, provides that the dutiable amount of the estate of any person will be determined by deducting an amount of R3,5 million from the net value (ie assets less liabilities) of the estate. This amount is often referred to as the ‘section 4A abatement’ or ‘primary abatement’.
In this article it will be referred to as the ‘primary abatement’. The Davis Tax Committee has recommended that the primary abatement be increased to R6 million per taxpayer. While this proposal is to be welcomed, it does have significant consequences for wills drafting as well as for existing wills.”
All material subject to our Legal Disclaimers.