The new Budget for 2018 is out and these are the factors that could affect your estate:
The good news:
Executor’s fees: These remain at 3,5% of total assets (plus VAT if your executor is registered for VAT)
VAT is up from 14% to 15%. The good news is that we are not yet registered for VAT, so you don’t pay this extra charge on your executor’s fees.
Donations tax remains at 20%, unless you donate more than R30 million in a tax year, when it will go up to 25%.
The Master’s office have changed their fee to a sliding scale on all estates from 1 January 2018, with a minimum of R600 to a maximum of R7 000,00. (The old fee was to a maximum of R600).
The bad/good news:
Estate duty has increased from 20% to 25%, but this only applies to you if your total estate is valued at R30 million or more. If your estate is under this value, then you will still pay 20%.
If you are unsure whether you would have to pay Estate Duty, please don’t hesitate to contact us and we will gladly work it out for you.
Office: 021 551 1741
Cell: 073 217 2644