I have power of attorney for my 90 year old mother's fixed deposit account (small amount). I am concerned that the worst might happen and want to transfer the account into my name before then as I am concerned that the money will be frozen and we may need it to pay for all the arrangements. My question is what is the most tax efficient (for me as her sole provider) way of doing this as the money will be used to make all the arrangements afterwards. In addition I currently pay for her old age home as well as everything she needs. Is there a way that I can have tax relief on this? can I claim for anything?
Unfortunately there is no tax relief for care, it would be ideal, but not in SA. You can transfer the money to a separate account in your name, making sure that there are none of your accounts or expenses paid and only hers. Keep records in case SARS ever does come knocking. However if the amount is less than R100 000 then you don't need to worry. In the event of her passing, if the value of her estate is less than R3.5m then there won't be any estate duty so having transferred the amount will not impact the tax. Just make sure to state in her estate that this money existed. Apologies for the insensitivity of this answer, but it helps to have the facts. You can claim any medical expenses paid for her however.
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.