Estate duty planning should focus on the lawful deductions, abatements and planning structures available under current law.

Common planning considerations include the section 4(q) deduction for qualifying property accruing to a surviving spouse, the section 4A abatement, qualifying bequests to approved public benefit organisations, appropriate lifetime donations and the long-term ownership structure of growth assets. As at September 2026, the annual donations tax exemption for a natural person is R150,000, but a donation can also have capital gains tax and other consequences.

An inter vivos trust can sometimes form part of estate planning, but transferring assets to a trust does not automatically eliminate estate duty or other taxes. The transfer itself can trigger CGT, donations tax or transfer costs; a loan account owing by the trust to the founder remains an asset of the founder’s estate; and section 7C of the Income Tax Act can apply to qualifying low-interest or interest-free funding.

Life insurance should also not be described as automatically “outside estate duty” merely because the policy is owned by a trust or pays directly to a beneficiary. Domestic policy proceeds on the life of the deceased can constitute deemed property under the Estate Duty Act, subject to the Act’s specific exclusions and deductions.

The correct strategy depends on the person’s family circumstances, residence status, assets, liquidity and tax position. Current rates and exemptions should be checked with SARS when the plan is reviewed.

See also: How is Estate Duty calculated? | How much can you inherit without paying tax?

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.