donation to son

[Thugnificent]

If a Holiday House i bequeath to the son upon death, is it considered as donation? if yes how is it treated in the CGT calculation.
Plus, is Money Market investment included in the CGT calculation?

[Dave A]

If a Holiday House i bequeath to the son upon death, is it considered as donation?

No. it's a bequest. Donations tax shouldn't come into it at all.

Essentially the entire estate would be subject to estate duty, which is 20% of the total value of the estate, with the first R3.5 million of the estate being exempt.

The CGT effects question is interesting. Unfortunately I don't know the answer, but with any luck someone else here does.

[Wildsniper911]

What Mr Dave said is true. First you have to understand that in tax if a person dies two entities come into being namely the estate and the the deceased. You will be liable for normal tax in your personal name at the time you still were alive and your estate will be taxed at 20% of your net asset value after the R3.5mil exemption is taken into account. There will be capital gains tax on all the assets in your name because it is seen as deemed disposal, however if you bequeath your assets to your spouse or children no capital gains tax will be levied, as it seen as a deemed roll over and your spouse or children will be liable for the capital gains tax in their estates. Here is also an interesting article from Moneyweb Tax http://www.moneywebtax.co.za/moneywe...7913&sn=Detail