The treatment of life insurance policies in deceased estates and the effect thereof on marriages
in community of property is the cause of various problems for executors. In terms of section
3(3) of the Estate Duty Act 45 of 1955 life insurance policies are deemed to be assets of the
deceased. Consequently life insurance policies are reflected in the estate duty addendum of
the deceased estate.
Life insurance policies however are not always reflected in the liquidation account of the
deceased estate as assets, notwithstanding the fact that life insurance policies are deemed to
be assets for estate duty purposes. In this regard a distinction should be made between two
situations: firstly where life insurance policies are reflected in the liquidation account of the
insured estate and secondly where life insurance policies are not reflected in the liquidation
account of the insured.
For spouses married in community of property this creates a problem especially when you keep
in mind that life insurance policies are in many instances a person's biggest monetary asset.
When life insurance policies are reflected in the liquidation account of the insured, the surviving
spouse has a claim on half of the policy proceeds. When life insurance policies are not
reflected in the liquidation account of the insured, the surviving spouse has no claim on the
policy proceeds.
The problem that arises in this regard is that there is no certainty as to what extent life
insurance policies should be included in the calculation of estate duty, and how these policies
must be reflected in the estate of the deceased. This uncertainty has been perpetuated by
courts. This research will illustrate how the courts came to different conclusions where the facts
were more or less similar. / Thesis (LL.M. (Estate Law))--North-West University, Potchefstroom Campus, 2010.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nwu/oai:dspace.nwu.ac.za:10394/4919 |
| Date | January 2010 |
| Creators | Van Vuuren, Yolandi |
| Publisher | North-West University |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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