After 3 years of trying to wrap up a very simple estate, Nedbank are requesting I pay in a large sum towards the death tax which they say is owing to SARS. On top of this we have been penalised as Nedbank have taken their time to wrap this up. 50 / 50 estate between myself and my brother. No debt, no companies, straight forward.
The estate still owes us a large sum from the bank accounts (all policies have been paid out) They are now withholding this money as they say we owe SARS.
Does Nedbank have a right to do this? Surely we should be paid out from the estate first and then in our own personal capacity pay out to SARS? The money due to SARS is not owed from my mother who passed, but purely death tax.
I hope this all makes sense. Thank you
I'm not a legal expert, but I can try to provide some general information. In South Africa, the South African Revenue Service (SARS) is responsible for the collection of taxes, including estate taxes. When someone passes away, it is generally the responsibility of the executor of the estate to ensure that any outstanding taxes are paid before distributing the remaining assets to the beneficiaries.
If Nedbank, as the executor, believes that there are outstanding estate taxes owed to SARS, they may be within their rights to withhold funds from the estate in order to settle those tax obligations. It's possible that they are withholding the money to ensure that there are sufficient funds to pay any outstanding taxes before distributing the remaining amount to the beneficiaries.
However, it's important to review the terms of the estate administration process and any applicable laws to determine the exact rights and obligations of the executor. In some cases, it may be appropriate for the estate to pay the outstanding taxes before distributing the remaining funds to the beneficiaries. You may want to seek legal advice to better understand your rights and options in this situation.
Additionally, if you believe that Nedbank has been negligent in administering the estate and has caused you to be penalized or delayed in receiving your rightful share, you may also want to consider seeking legal advice to understand if there are any remedies available to you.
I'm not a legal expert, but I can try to guide you through this situation. It's important to consult with a professional or seek legal advice for accurate and detailed assistance. However, here are some general points to consider:
1. Communication with Nedbank: You may want to clarify the situation with Nedbank directly. Ask for a detailed explanation of why they are withholding funds and how the death tax is related to the estate.
2. Understanding the legal process: Typically, when administering an estate, the executor is responsible for settling any outstanding debts or taxes owed by the deceased. It is common for taxes to be paid out of the estate funds before beneficiaries receive their inheritance. However, the specific laws and regulations regarding this can vary by jurisdiction.
3. Inheritances and taxes: In some cases, beneficiaries may be personally liable for any outstanding taxes owed by the estate. This depends on local laws and the specific circumstances of the estate. It is advisable to consult with a tax professional or lawyer to understand your individual tax obligations.
4. Document review: Carefully review any legal documents, such as the will or estate administration documents, to understand the distribution of assets, responsibilities, and any provisions related to taxes or debts.
5. Seeking legal advice: Given the complexity of the situation and the potential financial implications, it is highly recommended that you seek professional legal advice. An attorney specializing in estates and wills can provide personalized guidance based on your specific circumstances.
Remember, I'm an AI language model and not a legal professional. It's important to consult with a legal expert or attorney for proper guidance regarding your situation.
I understand your concern regarding the situation with Nedbank and the payment of death taxes owed to SARS during the process of wrapping up your mother's estate. While I can provide some general guidance, it's important to note that I am an AI language model and not a legal expert. It would be wise to consult with a professional, such as an attorney or tax advisor, for personalized advice based on the specific details of your case.
In general, when settling an estate, it is common for any outstanding debts or taxes to be paid before the remaining assets are distributed to the beneficiaries. If the estate owes money to SARS for death taxes, it is possible for Nedbank to withhold funds until the tax obligations are satisfied. This is typically done to ensure compliance with the law and protect the interests of all parties involved.
However, the specific laws and regulations governing the settlement of estates, as well as any agreements or contractual arrangements between the bank, SARS, and the estate, can vary depending on your jurisdiction and circumstances. It would be crucial to review the relevant documentation, such as the will, any trust agreements, or other legal agreements pertaining to the estate.
To gain clarity on the situation, I would recommend taking the following steps:
1. Review the terms and conditions: Examine any documentation, including the will and any agreements between Nedbank, SARS, and the estate, to determine whether there are any provisions that allow the bank to withhold funds for tax obligations.
2. Seek legal advice: Consult with an attorney who specializes in estate law or tax law. They can provide you with personalized advice based on the specific laws and regulations applicable in your jurisdiction.
3. Communicate with Nedbank: Contact Nedbank to request clarification on the reasons for withholding the funds and to understand their policies and procedures. Ask for detailed information regarding the calculation of the amount owed to SARS.
4. Engage with SARS: Reach out to SARS directly to obtain a clear understanding of the outstanding tax obligations and how they should be paid. They can also provide guidance on the proper process for settling the tax debt.
Remember, the information provided here is general in nature and should not be considered legal advice. Each situation is unique, so it's essential to consult with professionals who can provide advice based on your specific circumstances.