You are a registered financial adviser and on 25 February 2021, one of your clients Susan Martin died at the age of 55.

You are the executor and must calculate the estate duty liability of the estate. You have the following information:

Susan is survived by the following persons:

Bob (57 years old): Susans husband

Rob (32 years old): son

Jane (29 years old): daughter

Dylan (19 years old): son

Susan and Bob were married out of community of property, and the accrual system was applicable to them.

You have discovered the following assets and liabilities in the estate:

A luxury yacht with a market value of R12 000 000.

A life insurance policy of R7 500 000 from Santam.

Shares in a listed company with a market value of R11 300 000 on the date of her death. They were sold by the executor for R11 150 000 in the course of winding up the estate (there had been a sudden decline in the market).

A private residence in Camps Bay valued at R19 000 000. In 2018, Jane extended the house by building an additional granny flat (with the approval of Susan), anticipating that she and her mother would live together in the house. The improvements cost her R800 000 and represent 5% of the total value of the house.

Porcelain tea set that she inherited from her aunt, Katharina, five years earlier. The value of this porcelain tea set was R250 000 when she inherited it. The value was R300 000 on the date of her death. Susan paid estate duty of R36 000 previously. The tea set was bequeathed to Jane.

Susan owned a house in Portugal with a fair market value of R2 345 600, that was left to her by her uncle who was a resident of England at the date of her death.

Susan had a perfume business, valued at R1 450 000 at the time of her death.

Cash in bank accounts amounted to R935 000. Duties including the masters fees and executors remuneration of R425 000.

Administrative fees to finalise the estate to the value of R105 000.

Funeral and deathbed expenses incurred of R124 500.

Property rates owing in respect of her private residence of R200 500.

Bob has an accrual claim of R987 000 against Susans estate.

Susan made the following provisions in her will:

The private residence in Camps Bay is bequeathed to Jane but is subject to a usufruct in favour of Bob for the remainder of his life.

The luxury yacht is bequeathed to her son Rob.

The porcelain tea set she inherited from her aunt is bequeathed to Jane.

Susan's small business is bequeathed to Dylan.

An amount of R34 000 was bequeathed to a disadvantaged school, that is a registered public benefit organisation.

The surplus in the estate must be divided equally between her three children.

Required:

Q.6.1 Calculate the total estate duty payable by Susans estate. Note: Calculations should be rounded to the nearest Rand. (40)