Inherited property : transfer duties?

[Dolby]

Does it sound correct that you need to pay transfer duties on an inherited property?

My father passed away when I was 22 and the house went to a Estate Late Trust until 28 (now). However they want me to pay transfer fee's to have it transferred from Trust > Dolby name.

It doesn't sound right to me, but jusy wondering if anyone else knows more than me?

 

[blunomore]

Who are the 'they' in your post, Dolby?

 

[DJ...]

I'm no lawyer but it sounds about right - the property needs to be transferred from the Trust's name into yours, hence the transfer fees. Just because you're not paying for it doesn't mean they waiver the transfer duties afaik...

 

[Dolby]

'they' are the attornies handling everything.

I thought inherited may be waived - I mean what if I inherited some multi-million Rand estate? I wouldn't be able to afford to inherit it!

 

[Sackboy]

The Trust is a legal entity and presumably your father was the sole director. It may have been different if it belonged to him directly.

What about inheritance tax?

 

[Dolby]

The house was owned by him personally and the Estate Late Trust was setup to hold assets until I attained the right age.

No idea about estate dutis or inheritence tax, as his parents wanted full control and sorted everything else. I'm only taking over now and was just amazed :/

 

[blunomore]

'they' are the attornies handling everything.

I thought inherited may be waived - I mean what if I inherited some multi-million Rand estate? I wouldn't be able to afford to inherit it!

Have a look here (although this seemingly applies only to 'spouses') : http://www.property24.com/Property24/news/FullArticle.aspx?articleid=4280

 

[stoke]

Can't you just leave it there?
It was willed to you and as such belongs to you, even thought the trust owns it.
How much money is it going to cost to keep the trust alive?

 

[Sackboy]

Sounds like it belonged to the trust and now you control the trust. Perhaps it would be better to leave it like that, depending on your circumstances.

 

[stoke]

According to blue's doc:

The death position would not automatically create an entitlement to a property or share in the 'out-of-community' estate because in any event heirs, whether by will or intestacy, have always been, and continue to be, exempt from paying transfer duty.

This is berry interesting. Thanks blue.

 

[Dolby]

I'll check that out - thanks Blu.

The Estate Late Trust was only formed after my father passed away. Due to the fact that I couldn't touch anything till age 28, they set it up and put the property etc in it.

Now that I'm 28 the Trust has ended and I have received everything out of it - barring the property which is in the process. So the Trust never cost me anything.

 

[Dolby]

Very interesting link, Blu - thanks.

Is it possible that because I didn't get the property straight away (Dolby Dad > Dolby) and it needed to go into a Trust (Dolby Dad > Trust > Dolby) that I'm in this situation?

 

[MielieSpoor]

Very interesting link, Blu - thanks.

Is it possible that because I didn't get the property straight away (Dolby Dad > Dolby) and it needed to go into a Trust (Dolby Dad > Trust > Dolby) that I'm in this situation?

Yip. I'm sitting in the same situation. We are leaving the property in the trust because we want to sell the property (in Pietersburg) and buy a property in Pretoria. If we sell the property we will pay transfer fees only once. If do the transfer from the trust to us en then sell the property we have to pay transfer fees twice thus we decided to leave it in the trust and then sell it from the trust and buy a new property and register the new property in our names (me, my brother and sister).

It's a complex thing but the atttorneys explained everything quite propertly to us.

 

[blunomore]

Yet the article says NO transfer fees are payable ... ??

 

[Dolby]

I just called her and queries - she said she's not charging me transfer duties, but rather transfer fee's :/ I've sent through the invoices to my stepdad to check it out.

 

[DJ...]

Yip. I'm sitting in the same situation. We are leaving the property in the trust because we want to sell the property (in Pietersburg) and buy a property in Pretoria. If we sell the property we will pay transfer fees only once. If do the transfer from the trust to us en then sell the property we have to pay transfer fees twice thus we decided to leave it in the trust and then sell it from the trust and buy a new property and register the new property in our names (me, my brother and sister).

It's a complex thing but the atttorneys explained everything quite propertly to us.

Hang on - transfer duty is payable only by the purchaser, so why would you be liable for this cost if you were selling the property?

EDIT: ah, you're referring to transfer fees and not transfer duty...

 

[DJ...]

I just called her and queries - she said she's not charging me transfer duties, but rather transfer fee's :/ I've sent through the invoices to my stepdad to check it out.

The fees will be their own "admin" type charge and not the transfer duty/tax...

 

[blunomore]

The fees will be their own "admin" type charge and not the transfer duty/tax...

Oh yeah, that is different ... more like the cost of the lawyer and not the actual transfer duty payable to government.