Loan Accounts and Estate Duty
Zahid Hatiz
![Zahid Hatiz]()
Zahid Hatiz
Head of Distribution at Cinnabar Investment Management. Turning investment strategies into real results! Our funds drive growth and security. Our Partner Framework, unlocks new opportunities for your business!
WORD OF ADVICE TO BUSINESS OWNERS : Be wary of the financial statements that you are signing off by your auditor. I am sitting with a client at the moment, doing his estate planning. During the course of his business dealings his auditor has added multiple loan accounts on his businesses balance sheets. The effect of this is that now , when planning his estate, the values of these loans( in this specific clients case, amounting to millions of Rands) is seen as an asset in his estate for estate duty purposes, besides the company having to repay these loans on death.
Estate Duty is a Tax Levied on the value of your estate above R 3500 000, at 20%.