FINANCIAL WELLNESS COACH: Turning property proceeds into a tax-efficient retirement income
You can never escape the taxman entirely, but you can use clever investment strategies to avoid your estate owing big chunks of money.
When you own multiple rental properties, your estate can become quite valuable, leading to significant estate duty and executor's fees for your family. If you recently sold a property for R10 million and aim to invest the funds tax-efficiently to supplement your pension, you may want to explore using a disallowed retirement annuity (RA) and section 10C for tax-free income.
This strategy can help reduce both estate duty and executor's fees, making it an effective tool for those with substantial capital, accessible savings, and long-term retirement income needs. However, before proceeding, it is essential to consult a qualified financial adviser who can conduct a proper cash-flow, tax, and estate analysis to ensure this strategy aligns with your specific circumstances.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
