Estate duty in South Africa is levied in terms of the Estate Duty Act since 1955. Estate duty is currently calculated at a flat rate of 20% on the amount of which the net worth of an estate exceeds a primary rebate of R3,5 million. Statistics show that only a small percentage of estates in South Africa is taxable. Furthermore, many estate owners – particularly those whose estates are liable for estate duty – have the financial means to afford estate planning services to reduce estate duty. This reality has the effect that estate duty is paid by a very insignificant number of estates. Similar to estate duty, capital gains tax has the tax incentive of constituting vertical equity – creating the outcome that taxpayers with greater capability to pay taxes should be taxed more severely. Capital gains tax is also a tax payable (among other instances) at the death of an estate owner. This gives rise to double taxation. Further matters that need to be considered are constitutional justification of estate duty and the question whether the categories of current taxable estates correlate with the taxable estates envisaged by the legislator in 1955. In amending fiscal policy, it is useful to consider international trends. In countries such as Australia, New Zealand and Canada estate duty has been abolished. This phenomenon demonstrates that estate duty is not an essential element of a tax system. The aim of this study is to investigate the contribution of the abolishment of estate duty to South African tax law. / Thesis (LL.M.)--North-West University, Potchefstroom Campus, 2011.

Estate duty in South Africa is levied in terms of the Estate Duty Act since 1955. Estate duty is currently calculated at a flat rate of 20% on the amount of which the net worth of an estate exceeds a primary rebate of R3,5 million. Statistics show that only a small percentage of estates in South Africa is taxable. Furthermore, many estate owners – particularly those whose estates are liable for estate duty – have the financial means to afford estate planning services to reduce estate duty. This reality has the effect that estate duty is paid by a very insignificant number of estates. Similar to estate duty, capital gains tax has the tax incentive of constituting vertical equity – creating the outcome that taxpayers with greater capability to pay taxes should be taxed more severely. Capital gains tax is also a tax payable (among other instances) at the death of an estate owner. This gives rise to double taxation. Further matters that need to be considered are constitutional justification of estate duty and the question whether the categories of current taxable estates correlate with the taxable estates envisaged by the legislator in 1955. In amending fiscal policy, it is useful to consider international trends. In countries such as Australia, New Zealand and Canada estate duty has been abolished. This phenomenon demonstrates that estate duty is not an essential element of a tax system. The aim of this study is to investigate the contribution of the abolishment of estate duty to South African tax law. / Thesis (LL.M.)--North-West University, Potchefstroom Campus, 2011.

Estate planning is an important exercise aimed at increasing, preserving and protecting assets during a person's lifetime and providing for the disposition and continued utilisation of these assets after his death. The minimisation of estate duty, however, often dominates the motivation behind estate planning and many of the tools, structures and techniques used as part of the estate planning exercise are aimed at reducing or avoiding estate duty. One of these tools is the trust. In the 2010 Budget Review National Treasury suggested that taxes upon death should be reviewed. Such review may result in estate duty being abolished. Should this happen, the motivation behind many estate plans will dissipate and many estate plans that mainly focussed on estate duty will become ineffective. The question that comes to mind is whether trusts have a future as estate planning tools. Estate planning involves many different objectives and many of these objectives can be achieved through the use of trusts. Trusts have multiple benefits and only if a trust was set up solely to reduce or avoid estate duty, will such trust become superfluous. When looking at the use of trusts in countries that do not levy estate duty (such as Australia, Canada and New Zealand), it is clear that trusts remained useful and popular in these countries even after estate duty had been abolished. This is a strong indication that trusts have a future in South Africa and that the abolishment of estate duty will not affect the usefulness and popularity of trusts. / Thesis (M.Com. (South African and International Taxation))--North-West University, Potchefstroom Campus, 2012.

Estate planning is an important exercise aimed at increasing, preserving and protecting assets during a person's lifetime and providing for the disposition and continued utilisation of these assets after his death. The minimisation of estate duty, however, often dominates the motivation behind estate planning and many of the tools, structures and techniques used as part of the estate planning exercise are aimed at reducing or avoiding estate duty. One of these tools is the trust. In the 2010 Budget Review National Treasury suggested that taxes upon death should be reviewed. Such review may result in estate duty being abolished. Should this happen, the motivation behind many estate plans will dissipate and many estate plans that mainly focussed on estate duty will become ineffective. The question that comes to mind is whether trusts have a future as estate planning tools. Estate planning involves many different objectives and many of these objectives can be achieved through the use of trusts. Trusts have multiple benefits and only if a trust was set up solely to reduce or avoid estate duty, will such trust become superfluous. When looking at the use of trusts in countries that do not levy estate duty (such as Australia, Canada and New Zealand), it is clear that trusts remained useful and popular in these countries even after estate duty had been abolished. This is a strong indication that trusts have a future in South Africa and that the abolishment of estate duty will not affect the usefulness and popularity of trusts. / Thesis (M.Com. (South African and International Taxation))--North-West University, Potchefstroom Campus, 2012.