As noted above, the property is, among other things, the property of all the life policies of the deceased, whether or not that thief owns or beneficiaries of the policy. However, if politics were a key human policy; a policy of redemption and sale or a policy concluded and given in the sense of a pre-marital policy (before marriage) or after marriage (after marriage) and given after the marriage, such a policy is not considered to be the property of the deceased. The value of the seller`s interest must be determined in accordance with the terms (and purposes) of the “sale date” agreement, referring to the most recent valuation statement, as established and signed by all parties. With respect to the purchase and sale contract, the purchase price of the deceased`s interest or the “selling interest” within the meaning of the contract are greater: if the policy of financing a purchase and sale contract meets the requirements of Section 11, dot w), the ITA, the premiums payable may be deductible and the product may be subject to income tax based on the nature of the evidence. When risk guidelines are used to finance the purchase and sale contract, revenues covered in paragraph 55, paragraph 1, points a), c) and (e) of the 8th calendar are exempt from the CGT to the ITA. The question arises as to whether the value agreed to in the purchase and sale contract should be used as the value of the property in question for the purposes of inheritance tax. Scenario 2: Physical person A and Company/Trust B are partners (co-shareholders) of Company X.A. has taken out life insurance on the life of Director/Agent B to enable A to acquire shares/interests of Director/Fiduciary B in Company X in the event of the death of Director/Agent B. A paid all the bonuses from the beginning of the policy and remained a shareholder of Company X until the death of Director/Agent B. In this scenario, the exclusion does not apply, since Section 3(3) (a) (iA) requires both A and Director/Agent B to hold a share/interest at the time of the death of Director/Trustee B. Director/Agent B does not hold shares/interests, as they are held by Company/Trust B.” If all the requirements are not met and the exclusion does not apply, all interests are subject to inheritance tax,” Malan said.
The amount of inheritance tax can be reduced from the sum of all premiums paid, plus interest on these premiums, which are calculated at 6% per annum.