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What you need to know

Estate duty

Estate duty is the tax on the total market value of a person's assets as at the date of his or her death. 

Estate duty no longer applies for deaths occurring on or after 15 Feb 2008. However, you may still need to pay income tax on earnings from the estate's assets.

 

Income Tax of an Estate

Income tax of an estate is the tax on income earned from the assets left behind by a deceased after date of death. This applies until the assets are sold or transferred to beneficiaries.

Who must pay: Depending on the facts of the case, the administrator, executor, trustee or beneficiary is liable for paying this income tax. 

What income is taxed: Any income generated by the estate's assets, such as:

  • Rent income from properties
  • Dividends from shares
  • Interest from bank accounts
  • Trade or business profits

What you need to do

If you are managing an estate, you must file Income Tax Return (Form T) for any income derived by the estate after the person's death.

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