As an estate planning tool it is sometimes suggested to the estate owner that he bequeath a property subject to two successive life usufructs. It is proposed in this article, that should the bare dominium holder pass away prior to both of the proposed usufructuaries, that the life expectancy of the first usufructuary, as being ‘the person entitled to such interest’, be used to calculate the value of the usufruct, which value in turn is required to calculate the value of the bare dominium, for estate duty purposes, in the bare dominium holder’s estate.

Educational Aim:

The aim of this module is to provide a brief overview of the use of limited interests such as usufructs in estate planning at the hand of one of the frequently used structures and how this impacts on estate duty.

Educational Objectives:

Upon completion of this module learners should:

1. Have a clear understanding of:

a)     The levy of duty on usufructs, when the right continues to another;
b)     The levy of duty in respect of the bare dominium where the bare dominium holder passes away;
c)     The rights of an heir to his/her inheritance prior to finalisation of the estate

2. Be able to:

a)     know which section, 5(1)(b) or 5(1)(f), to apply in order to calculate the duty payable in respect of the bare dominium or the usufruct over a property;
b)     know whose life expectancy to use for these calculations.


: R 114.00 incl. VAT
Expiry Date
: 08/10/2014
CPD Units
: 1.00 Point
: 3.6/4

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