Capital Acquisitions Tax (CAT)

Capital Acquisitions Tax (CAT) is a tax on gifts and inheritances. Inheritance tax may have to be paid if property is inherited on the death of any person. Gifts and inheritances between spouses are exempt.


Guardianship for children under 18 years of age

Your will should give directions as to who you wish to appoint as guardians of your children, for the care of those children and how they are to be provided for.

Unmarried couples additionally should ensure that each of their wills clearly states who is to have custody and guardianship of their children if one of them dies. Most importantly, both married and unmarried couples should ensure they their Wills clearly state how is to have custody and guardianship if both spouses/partners die.

Restrictions Imposed by Law on how you may deal with your Estate

If you die Intestate (without having made a will): Your spouse is entitled to your entire estate (if there are no children). If you leave a spouse and children your spouse is entitled to two thirds of your estate and your children are entitled to one third. If you do not leave a spouse or children your parents are entitled to your entire estate.

If you die Testate (having made a Will): If you are married and make a will, your spouse nonetheless has a legal right to half of your estate where there are no children and one third if you have children.

Are you aware that being separated from your spouse does not mean that your spouse automatically loses the right to a share of your estate? These rights can however be cancelled under the terms of a separation agreement, a judicial separation or by a court order when there is a divorce.

It is very important to be aware that in the case of unmarried partners the partner has no succession rights, unless of course they are provided for in a will.

Your children are not automatically entitled to any part of your estate if you have made a will but they can apply to court if you fail in your moral duty as a parent to provide for them in accordance with your means taking into account their position in life.


Administration of Estates

In order to have the authority to deal with the assets of an Estate, the Executors must apply for an Order from the High Court to allow them to collect and distribute the assets. This order is called a Grant of Probate (when someone dies and has made a will) or a Grant of Administration (where someone dies without having made a will). It takes approximately 6 months for a Grant to issue.

We will help the Executors to deal with the assets and advise on any Taxes due at that time.