⚰️ Estate Planning & Inheritance Tax

Estate Duty Calculator
South Africa 2025

Calculate estate duty (death tax) on your estate with accurate 2025 rates. Plan your inheritance, minimize tax liability with spouse deductions, trusts, and charitable bequests.

R3.5M
Abatement (Exemption)
20%
First R30M Rate
25%
Above R30M
Free
Calculator

Estate Duty Calculator

Calculate estate duty (death tax) on your estate with 2025 rates

Affects spouse deduction on estate duty

Total value of all assets (property, investments, cash, etc.)

Mortgages, loans, funeral costs, executor fees

For married ANC - spouse's own estate value

If estate is beneficiary (pays into estate, attracts duty)

Exempt from estate duty - passes directly to beneficiaries

Donations to registered charities/PBOs (deductible)

📊 Estate Valuation

Gross Estate Value:R6,000,000
Less: Deductions
Liabilities & Debts:-R500,000
Spouse Deduction:-R3,000,000
Excluded Assets (Retirement):-R800,000
Net Estate Value:R1,700,000

💰 Estate Duty Calculation

Net Estate:R1,700,000
Less: Abatement (R3.5M):-R3,500,000
Dutiable Estate:R0
Estate Duty Payable:R0
Effective Duty Rate:0.00%

👨‍👩‍👧‍👦 Amount to Heirs

Gross Estate:R6,000,000
Liabilities:-R500,000
Estate Duty:-R0
Net to Heirs:R5,500,000
Lost to Duty:0.00%

✓ No Estate Duty Payable

Your estate is below the R3,500,000 exemption threshold. No estate duty will be payable. The spouse deduction significantly reduces your estate duty liability.

What is Estate Duty in South Africa?

Estate Duty (also called death tax or inheritance tax) is a tax levied on the estate of a deceased person. It's calculated on the net value of the estate after deductions and exemptions.

💰

R3.5 Million Abatement

First R3.5M of net estate is tax-free (exemption threshold)

📊

20% or 25% Rate

20% on dutiable estate up to R30M, then 25% on excess

💑

Spouse Deduction

Assets passing to spouse are fully deductible (no estate duty)

🏦

Retirement Funds Exempt

Pension, provident, RA funds pass directly to beneficiaries tax-free

Estate Duty Calculation Formula

Step 1: Calculate Gross Estate

Sum all assets: property, investments, cash, vehicles, life insurance payouts

Step 2: Deduct Liabilities

Mortgages, loans, funeral costs, executor fees, debts

Step 3: Deduct Exemptions

Spouse deduction, charitable bequests, retirement funds

Step 4: Apply R3.5M Abatement

Subtract R3.5M exemption from net estate = dutiable estate

Step 5: Calculate Estate Duty

20% on first R30M of dutiable estate, 25% on excess

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Estate Planning Tips

  • • Use R3.5M abatement - each spouse gets own exemption
  • • Leave assets to spouse first (no duty on first death)
  • • Put life insurance in trust (excludes from estate)
  • • Consider charitable donations (fully deductible)
  • • Maximize retirement funds (exempt from duty)
  • • Review and update will every 3-5 years

Strategies to Reduce Estate Duty

💍 Spouse Planning

Assets passing to surviving spouse are 100% deductible. Use unlimited spouse deduction.

  • ✓ Leave everything to spouse first
  • ✓ No duty on first death
  • ✓ Spouse's estate then uses their R3.5M abatement

🏦 Life Insurance Trusts

Life insurance payouts to estate attract duty. Set up insurance trust to avoid this.

  • ✓ Policy owned by trust, not you
  • ✓ Payout goes to trust beneficiaries
  • ✓ Excluded from dutiable estate

🎁 Donations & Trusts

Strategic donations during lifetime reduce estate size and future duty.

  • ✓ Annual R100K donation tax-free allowance
  • ✓ Transfer assets to living trust
  • ✓ Charitable donations fully deductible

What's Included vs. Excluded from Estate Duty

✕ Included in Estate (Dutiable)

  • ✓ Property (primary residence, rental, investment)
  • ✓ Investments (shares, bonds, unit trusts, crypto)
  • ✓ Cash, savings, bank accounts
  • ✓ Vehicles, boats, valuables
  • ✓ Life insurance (if estate is beneficiary)
  • ✓ Business interests, intellectual property
  • ✓ Foreign assets owned by SA residents

✓ Excluded from Estate (Tax-Free)

  • ✓ Retirement funds (pension, provident, RA)
  • ✓ Life insurance in trust (beneficiaries not estate)
  • ✓ Assets passing to spouse
  • ✓ Charitable bequests to PBOs
  • ✓ First R3.5M of net estate (abatement)
  • ✓ Funeral policy payouts

Important: Estate duty is calculated on the date-of-death value of assets, not the original purchase price. Property and investments that have grown in value over time will be valued at their current market value when calculating estate duty.