QUESTION 5 [15 MARKS]

Tarryn and Tim got married in community of property in 1999. Tim has died intestate, and an executor was appointed to curate his affairs. The executor determined that the couple had the following assets in their estate:

A property used as a primary residence valued at R5,500,000;

Furniture and household goods worth R1,300,000;

A fixed deposit investment with First National Bank of R860,000; and

Liabilities valued at R600,000 of which R20,000 were for funeral costs.

Also, Tim had a usufruct interest on a warehouse that was valued at R350,000 and it now accrues to Tarryn. Neither spouse had been married before.

Required:

Calculate the estate duty of the deceased spouse.