Nathan Pillay separated from his wife Tanya in 2019 and moved in with his personal assistant Sandy. He divorced from his wife on 1 February 2021. He died on the 5th of May 2021 with an estate of R5 000 000. His will was drawn up five years ago and he never changed it. According to his will his estate must be distributed as follows:

• Surviving spouse, Tanya:

• Life policy: Ex-wife nominated beneficiary:

• Legacy to charity (a registered PBO):

• Children:

R1 000 000 R700 000 R200 000 Residue of his estate

The funeral and administration expenses amount to R30 000 The executor is not registered for VAT.

REQUIRED:

1. 3.1 Explain who will inherit from his estate.

2. 3.2 What are Sandys options?

3. 3.3 Calculate the estate duty payable (assume Sandy successfully claimed R2million from the estate