My daughter died suddenly and she left her annuities to me, her husband, daughter and son (four people), the insurance company made a mess up of the division of the assets and will not change them. Therefore my son in law has to pay over to me the amount of R258 000, to make up my share, as the money was left to us in her estate, is this amount a donation or an inheritance? I feel it is unfair for him to pay tax on this money, when it is not part of his assets, but part of the inheritance received by all four of us.
I am sorry to hear of your loss. The insurance companies do make a mess of these situations because of the way the law reads. In theory it would be a donation made to you, but he can "'loan"" you the amount and then donate R100 000 tax free a year.
Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.