oa De Rebus - The Fifth Option

Volume 1997, Issue 356
  • ISSN : 0250-0329



In his erudite book The Drafting of Wills (Cape Town: Juta & Co 1993), Harry Barker at 60 - 63, quotes a case study by Justice Basil Wunsh in which Judge Wunsh calculated the different amounts of estate duty that would be paid depending upon how, in a certain set of circumstances, the testator's will was drawn. The essence of the exercise was to illustrate that, if a testator simplistically takes advantage of the deduction allowed by s 4(q) of the Estate Duty Act 45 of 1955 and leaves his entire estate to his wife, more duty will be paid on his wife's death than if he had also taken advantage of the s 4A deduction of R 1 million, because, if he relies only on the s 4(q) deduction, that R 1 million will be part of his wife's estate whereas he could still, without incurring any estate duty on his own death, have diverted the R 1 million to another entity, but still for the benefit of his family.

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