Need HELP understanding property inheritance

[zulucat]

I wouldn't suspect you if they died suddenly at the same time...

 

[Kosmik]

So I just spoke to Paula and my fears were actually fairly accurate. She says over and above 3.6 million my inheritance of the property would be taxed at 20% of the value of the property. So I need to prepare for a 1-2 million payment - a bond could help, or selling the property.

*edit*
Okay a further email added some context. Seems 3.5 million is per spouse so only over and above 7 million. But the executor's fees will be a lot and then also conveyer fees, waiting for details on those.

Executors fees are capped fyi.

The maximum legal rate is 3.5% of the gross value of your estate plus VAT. In addition to this, your executor can also charge 6% plus VAT on all income coming into the estate during the administration process.

 

[SafariTin]

Executors fees are capped fyi.

Thus R350,000...

Off course the 3,5% can be negotiated down, but whether it is R100,000 or R350,000, it still requires planning as most people do not generally have that amount lying around in cash.

 

[Kosmik]

Thus R350,000...

Off course the 3,5% can be negotiated down, but whether it is R100,000 or R350,000, it still requires planning as most people do not generally have that amount lying around in cash.

R350k is an estate of R10Million? Somehow I doubt that from what the op said.

 

[Messugga]

Its R100k but yes. They need to find out what the min amount is they can sell it for.

Buying it at a minimum amount would put him on the hook for more CGT when it comes to selling though, wouldn't it?

 

[What now]

Heya,

So my circumstances are that as an only child I will inherent my parent's property when they pass (they're in their 70s) - I live on the property in a separate cottage. My dad bought the property and built the home 4 decades ago.

I'm a bit (well completely) clueless as to how the inheritance would work given the fact that they had some financial problems and now I support them and their only real assets are the property and a car.

As I understand it (might be totally wrong) - 20% of the value of the property would need to be taken from my parents assets (where there is none) and then the property would be transferred into my name with no tax implications. But if they don't have assets to liquidate, except the house itself, to pay that 20% - would I have to pay it?

That could be a R2 million bill, which would be...challenging. Really need to have an idea of this so I can plan accordingly.

Thanks MyBB brain trust!

A more important question, are you single and willing to get married COP?

 

[SafariTin]

R350k is an estate of R10Million? Somehow I doubt that from what the op said.

As I understand it (might be totally wrong) - 20% of the value of the property would need to be taken from my parents assets (where there is none) and then the property would be transferred into my name with no tax implications. But if they don't have assets to liquidate, except the house itself, to pay that 20% - would I have to pay it?

That could be a R2 million bill, which would be...challenging. Really need to have an idea of this so I can plan accordingly.

She says over and above 3.6 million my inheritance of the property would be taxed at 20% of the value of the property. So I need to prepare for a 1-2 million payment - a bond could help, or selling the property.

But perhaps the numbers are illustrative? Interesting though that the same amount is used in both quotes.

 

[Nerfherder]

Buying it at a minimum amount would put him on the hook for more CGT when it comes to selling though, wouldn't it?

I think you pay either way... its not the profit its the fact that you turned an asset into money.