The net estate of a deceased person, excluding the amount inherited by a surviving spouse, will be taxed at a rate of 20% on an amount up to R30 million and at 25% on an amount above R30 million. The first R3.5 million of the estate is exempt from estate duty (the s4A abatement as defined above). Where the first dying spouse’s estate does not utilise the s4A abatement, that rebate or balance thereof may be rolled over to the surviving spouse. This balance will be added to the surviving spouse’s R3.5 million abatement so that the second dying spouse has a total R7 million abatement to calculate the estate duty on the estate of the second dying spouse.
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