How will you be Taxed on Death?
Ruvan Grobler • October 30, 2025
It’s often said that the only certainties in life are death and taxes. While it’s not the most cheerful topic, understanding how taxes work when someone passes away can make a difficult time a little less overwhelming. This article aims to unpack the key tax considerations in a straightforward way, so you can plan ahead and ensure the estate is handled efficiently and in accordance with the law but also to give a little perspective on the advice we give as wealth managers.
Beneficiaries of deceased estates are often shocked and upset when they see the taxes payable in the estate. Understandable of course, as this eats into their inheritance.
Here are a few examples of some of the tax liabilities a deceased estate may face:
- Estate duty: Levied on the total value of your dutiable estate. 20% levied for deceased estates of more than R3 500 000 and 25% for deceased estates of more than R30 000 000.
- Transfer Duty: Levied on the transfer of ownership of immovable property from the estate to the beneficiary of the immovable property as set out in the last will.
- Income Tax:
- General Income: Income from salaried employment as well as rental income will be taken into account up to the date of death. Can include income earned as a sole proprietor.
- Income from Investments: This can be in the form of Life- or Living annuity income payments but also interest earnings from discretionary investments or savings vehicles. All rebates and exemptions for the tax year will be apportioned up to date of death.
- Capital Gains Tax: Capital gains tax can be levied on the gain that arises from the sale of assets to provide cashflow for the estate or beneficiaries. A change of ownership can also trigger capital gains tax. The annual exclusion in the year of death is R300 000 instead of the normal R40 000 annual exclusion.
It’s important to plan and make provision for these costs in your estate, there may be more moving parts if the deceased held offshore assets.
Here are a few ways to reduce your estate’s tax burden:
- Acquire (or move) assets through structures like trusts or companies.
- Invest in tax-efficient discretionary investment structures where the liability is settled in the structure and not in your personal name.
- Pre- and post-retirement investments do not form part of the dutiable estate if beneficiaries are nominated. No interest earnings- or CGT liabilities are payable on these structures.
Ruvan J Grobler RFP™ (PGDip Financial Planning)
I recently signed up for one of my bucket list items, the demanding Comrades Marathon. It’s something that I always had in the back of my mind, and I said to myself that if I ever where to take on the 87km beast, I am going to be prepared. So, as I successfully entered and received my number, I immediately did 2 things: 1) I got a coach: Someone who is experience and can guide me week by week, month by month leading up to the Ultra Marathon 2) I got a training partner : After using all my persuasion skills, I convinced a friend to join me on this journey. Not only for the comradery, but more as an accountability partner, to make sure I show up for training even though I might not feel like it For many of us, we want to make sure 2026 is our best year yet, not just physically, but financially as well. How can we be more productive and make more money or at least manage it better? In his Book Atomic Habit, James clear writes about the ‘Commitment device’ in chapter 14. A Commitment device, also referred to as the ‘ Ulysses pact’ is a choice you make in the present, that controls your actions in the future. It is a way to lock in future behaviour, bind you to good habits and restrict you from the bad ones. Some examples include: - Eating out of smaller plates – to limit calorie intake. - Unsubscribe to emails and apps – to waste less time - Setting up an outlet timer, to cut off the Wi-Fi at 9pm per night - to limit social media or series binging. - Keep your phone in another room when working – to avoid distractions When it comes to your finances here are a couple of things you can try to make 2026 you most financially rewarding year yet. - Automate your investments: Remove the temptation to spend your money by setting up debit order for the money to be invested as soon as it hits your bank account - Appoint a financial partner – this can be an advisor, friend or spouse: his person must be strict and diligent and keep you to your goals. Schedule quarterly calls to go through your investment accounts to see how much it has grown - Buy groceries only twice a week: We almost always buy things we don’t need – limit your number of visits to the store - Let you partner hide your credit card during the week and have an x amount of cash available. This might sound harsh but can be extremely effective as we swipe or tab often without thinking. There’s so many examples of how we can adjust our behaviour by setting up ‘ Commitment devices. I’d like to hear your favourites so please send them through to geo@bovest.co.za and let’s help each other to make 2026 memorable and profitable. Geo Botha CFP® Marketing Director
Dearest clients and colleagues. While I was contemplating about this month’s topic, I felt led to share the following testimony with all of you. I really hope it will encourage you and call you to action. Before I begin, I am sure you will get enough information about the markets and politics from my colleagues, so I am happy to divert and continue my story. Just a bit of background. I have been on diamond Vitality status with Discovery for many years. I have faithfully done my yearly check ups every year and also the specific tests that Discovery requests. I slipped up after Covid with my mammogram and pap smear and I didn’t know I had to do a colonoscopy. Just before my birthday in July, I had severe stomach pain. I am not a person who likes to visit a doctor but here I certainly learned a lesson. If you have pain, your body is telling you there is something wrong, so don’t be tough, just go and check it out. I was diagnosed with colon cancer. EVERYTHING changes in an instant. The way you look at life, your values, how you see people, your relationship with your Creator and Saviour. Everything happened so fast and I had to go in for major surgery. After 10 days in ICU, fighting for my life and a couple more days in the surgical ward, I was discharged. So many things were going through my mind. Will I see Christmas again? Will I ever be strong enough to enjoy life again? Will I see my children and grandchildren again? Will I have to go for chemotherapy and radiation? Doubt and fear started to slowly enter my mind. The battle is in the mind. Then breakthrough! My tests came back and I was clear. No cancer in my body. Surgery was successful. Oncologist was happy. I do have to be monitored regularly, but praise God? Here I must elaborate. I have a strong support group who carried me in prayer. I have faith in our Almighty God who still heals today. Bovest as a company also supported me phenomenally. Thank you to all 🙏 My message for all of you is the following: please go to the doctor if you have pain or discomfort. Please do your mammogram, pap smear, prostate and colonoscopy tests regularly. Prostate test now is just a blood test. Please make sure your severe illness and income protection cover is in place. You really need it. Speak to your advisor about it. Don’t be like an ostrich, prevention is far better than cure. Surround yourself with positive people. Spend time in the Word. It is alive and it is healing to your body, soul and spirit. You are welcome to reach out to me anytime. May you have an amazing 2026 and please look after yourself. Kind regards Yvonne
