Frequently asked questions
Do I need to file a deceased estate tax return?
Yes. The Executor of the Estate is responsible for lodging the tax returns for both the deceased individual, as at the time of their death, and for the Estate, from date of death to when the Estate is finalised.
Do you pay capital gains tax on deceased estates?
The Executor of the Estate is required to disclose and submit the Capital Gains Tax calculation together with proof of documentation to the South African Revenue Services (SARS) as part of the deceased individual’s annual income for the financial year in which they passed away.
Do you have to pay tax on inherited property?
In general, when an individual passes away and bequeaths their entire estate to their Surviving Spouse, no Capital Gains Tax is payable.
Do you have to open an estate account when someone dies
Yes, if the deceased has any assets (at least R 1000) which need to be administered then as per the Administration of Estates Act 66 of 1965, an Estate Late bank account will need to be opened.
Do I have to pay taxes on the sale of my deceased parents home
Yes. Taxes will be payable either as part of the Estate if you sell it before the Estate is finalised, or as Capital Gains Tax on your individual profile if you sell it after you have inherited it.