QUESTION $2[25]$

Estate Duty is levied on the death of a natural person in terms of the Estate Duty Act.

Your client provides you with the following transactional information:

$$ AVBOB fees of R$35000.$

$$ Property of the deceased at date of death of R$5000000.$

$$ Funeral policy fees of R$13000$ paid on behalf of the surviving spouse.

$$ Property deemed to be property of the deceased at date of death of R$540000.$

$$ Life insurance of R$1500000$ paid directly to the spouse.

$$ Debit order totalling R$20000$ still effective on the deceased$$s bank account for the

mortgage payment.

$$ Wesbank vehicle finance loan of R$150000.$

$$ Property valuation fees of R$45000.$

$$ Legal fees to attorney of R$2500$ to administer the collection of revenues accrued

before date of death.

$$ Management fees to XYZ to administer the current daily operations of the

deceased$$s business.

$$ Attorney fees to assist the executor to resolve SARS queries of R$7000.$

$$ Matrimonial Property Act claims of R$1000000.$

$$ Improvements made by beneficiaries to properties of R$4000.$

$$ Improvements to properties subject to a limited interest of R$14500.$

Required: Assess the financial data provided and calculate, indicating reasons why

including$/$excluding each amount, the estate duty payable.

Use the below column when aswering the question

ESTATE DUTY CALCULATION I

ASSETS I

LESS LIABILITIES AND EXPENSES I

LESS ABATEMENT I

DUTIABLE AMOUNT I

ESTATE DUTY I