Your estate duty
Making your way to the summit of Mount Everest has its costs and takes its toll on your gear and supplies. This can be compared to estate duty.
The cost of the journey
Things like replacing supplies, writing off gear or sending for new equipment add to the expenses. Estate duty is essentially what the journey has cost you.
Estate duty calculation
The estate duty on your estate will usually be worked out as follows:
- Property value plus deemed property (gross estate) MINUS
- Funeral expenses, debts, taxes owed and property left to your spouse (liabilities and deductions) MINUS
- Abatement amount of 3.5 million EQUALS dutiable estate
- Dutiable estate multiplied by 20% equals the estate duty payable.
Covering the cost
Running out of cash? The cost of winding up an estate can increase quickly. Estate duty, executor's fees and outstanding taxes or debts all have to be paid. Make sure your dependents don't have to pay a high price for what you left them.
A life insurance policy can prevent trouble. It's available right away to your dependents and not taxed.
A vital document
Having a will forms a key part of protecting your loved ones. How it is structured determines the deductions paid by beneficiaries and is influenced by other factors, such as marriage. Find out more about drawing up a will.