Are your affairs in order? Changes introduced in South Africa’s 2026 tax framework could affect how you plan your estate, protect your assets and provide for your loved ones.
Understanding these updates can help you make informed decisions about your financial legacy.
- Increased Tax-Free Donations
From 1 March 2026, individuals can donate up to R150,000 per tax year without paying donations tax, an increase from the previous R100,000 limit.
This creates an opportunity to transfer assets to loved ones during your lifetime while potentially reducing the value of your future estate.
- Capital Gains Tax Relief
The capital gains tax exclusion applicable in the year of death has increased to R440,000.
When someone passes away, certain assets are generally treated as though they have been sold at market value for tax purposes. The increased exclusion may reduce the resulting tax liability, helping preserve more of the estate for beneficiaries.
- Estate Duty Remains Unchanged
Although certain tax exemptions have increased, estate duty rates remain:
- 20% on the first R30 million of the dutiable estate.
- 25% on the portion exceeding R30 million.
The basic estate duty deduction also remains at R3.5 million.
Proper planning is therefore essential to ensure sufficient funds are available to cover taxes, debts and administration expenses.
- Is Your Will Up to Date?
While these tax changes do not alter the fundamental requirements for a valid will, they provide a timely reminder to review your estate plan.
Changes in your family circumstances, property ownership or financial position may affect how your assets should be distributed.
An outdated will can create unnecessary complications for those left behind.
Plan Today, Protect Tomorrow
Estate planning involves more than deciding who inherits your assets. It is about protecting your family’s future and ensuring your wishes are carried out.
At Kaplan Blumberg Attorneys, our Testaments & Estates team can assist with drafting and reviewing wills, estate planning and the administration of deceased estates.
Contact Kaplan Blumberg Attorneys to ensure your estate plan reflects your wishes and the latest applicable tax provisions.