Regulations > Regulations under the Estate Duty Act

Notice No. R. 1942

23 September 1977

The State President has, under and by virtue of the powers vested in him by section 29 of the Estate Duty Act, 1955 (Act No. 45 of 1955), made the subjoined regulations:

VALUATION OF ANNUITIES OR OF FIDUCIARY, USUFRUCTUARY OR OTHER LIMITED INTERESTS IN PROPERTY IN THE ESTATES OF DECEASED PERSONS

Calculations for the purposes of the valuation of annuities or of fiduciary, usufructuary or other limited interests in property in the estate of any person who died or dies on or after 1 April 1977 shall be made in accordance with the Tables subjoined hereto:

(The regulations promulgated under Government Notice No. 641 of 13 April 1956 shall continue to apply in relation to the estate of any person who died before 1 April 1977.)

TABLE A

THE EXPECTATION OF LIFE AND THE PRESENT VALUE OF R1 PER ANNUM FOR LIFE CAPITALISED AT 12 PER CENT OVER THE EXPECTATION OF LIFE OF MALES AND FEMALES OF VARIOUS AGES

Age	Expectation of life		Present value of R1 per annum for life		Age
Age	Male	Female	Male	Female	Age
0	64.74	72.36	8.32791	8.33105	0
1	65.37	72.74	8.32828	8.33114	1
2	64.50	71.87	8.32776	8.33091	2
3	63.57	70.93	8.32714	8.33064	3
4	62.63	69.97	8.32644	8.33033	4
5	61.69	69.02	8.32567	8.32999	5
6	60.74	68.06	8.32480	8.329.61	6
7	59.78	67.09	8.32381	8.32918	7
8	58.81	66.11	8.32271	8.32869	8
9	57.83	65.14	8.32146	8.32815	9
10	56.85	64.15	8.32007	8.32753	10
11	55.86	63.16	8.31849	8.32684	11
12	54.87	62.18	8.31673	8.32608	12
13	53.90	61.19	8.31480	8.32522	13
14	52.93	60.21	8.31265	8.32427	14
15	51.98	59.23	8.31029	8.32320	15
16	51.04	58.26	8.30770	8.32203	16
17	50.12	57.29	8.30489	8.32071	17
18	49.21	56.33	8.30180	8.31926	18
19	48.31	55.37	8.29841	8.31764	19
20	47.42	54.41	8.29471	8.31584	20
21	46.53	53.45	8.29061	8.31383	21
22	45.65	52.5	8.28613	8.31161	22
23	44.77	51.54	8.28117	8.30912	23
24	43.88	50.58	8.27564	8.30633	24
25	43.00	49.63	8.26959	8.30326	25
26	42.10	48.67	8.26274	8.29981	26
27	41.20	47.71	8.25516	8.29595	27
28	40.30	46.76	8.24677	8.29171	28
29	39.39	45.81	8.23737	8.28697	29
30	38.48	44.86	8.22694	8.28170	30
31	37.57	43.91	8.21538	8.27583	31
32	36.66	42.96	8.20257	8.26930	32
33	35.75	42.02	8.18836	8.26210	33
34	34.84	41.07	8.17262	8.25400	34
35	33.94	40.13	8.15536	8.24509	35
36	33.05	39.19	8.13647	8.23517	36
37	32.16	38.26	8.11558	8.22426	37
38	31.28	37.32	8.09274	8.21199	38
39	30.41	36.40	8.06781	8.19866	39
40	29.54	35.48	8.04030	8.18386	40
41	28.69	34.57	8.01067	8.16762	41
42	27.85	33.67	7.97844	8.14983	42
43	27.02	32.77	7.94344	8.13012	43
44	26.20	31.89	7.90547	8.10881	44
45	25.38	31.01	7.86380	8.08527	45
46	24.58	30.14	7.81924	8.05956	46
47	23.79	29.27	7.77109	8.03119	47
48	23.00	28.41	7.71843	8.00026	48
49	22.23	27.55	7.66236	7.96617	49
50	21.47	26.71	7.60201	7.92950	50
51	20.72	25.88	7.53713	7.88967	51
52	19.98	25.06	7.46748	7.84646	52
53	19.26	24.25	7.39387	7.79965	53
54	18.56	23.44	7.31631	7.74834	54
55	17.86	22.65	7.23234	7.69355	55
56	17.18	21.86	7.14414	7.63363	56
57	16.52	21.08	7.05178	7.56896	57
58	15.86	20.31	6.95225	7.49927	58
59	15.23	19.54	6.85004	7.42321	59
60	14.61	18.78	6.74206	7.34135	60
61	14.01	18.04	6.63010	7.25457	61
62	13.42	17.30	6.51232	7.16020	62
63	12.86	16.58	6.39301	7.06046	63
64	12.31	15.88	6.26822	6.95537	64
65	11.77	15.18	6.13789	6.84161	65
66	11.26	14.51	6.00726	6.72393	66
67	10.76	13.85	5.87165	6.59893	67
68	10.28	13.20	5.73403	6.46635	68
69	9.81	12.57	5.59182	6.32818	69
70	9.37	11.96	5.45165	6.18466	70
71	8.94	11.37	5.30775	6.03607	71
72	8.54	10.80	5.16744	5.88278	72
73	8.15	10.24	5.02437	5.72222	73
74	7.77	9.70	4.87876	5.55743	74
75	7.41	9.18	4.73490	5.38893	75
76	7.07	8.68	4.59354	5.21727	76
77	6.73	8.21	4.44663	5.04679	77
78	6.41	7.75	4.30309	4.87092	78
79	6.10	7.31	4.15898	4.69389	79
80	5.52	6.89	4.02440	4.51647	80
81	5.55	6.50	3.89051	4.34399	81
82	5.31	6.13	3.76802	4.17315	82
83	5.09	5.78	3.65276	4.00482	83
84	4.89	5.45	3.54546	3.83988	84
85	4.72	5.14	3.45232	3.67921	85
86	4.57	4.85	3.36864	3.52371	86
87	4.45	4.58	3.30066	3.37426	87
88	4.36	4.33	3.24907	3.23175	88
89	4.32	4.11	3.22597	3.10296	89
90	4.30	3.92	3.21438	2.98912	90

N.B. - The age is to be taken as at the next birthday after the date when the right was acquired.

Example - Find the present value of an annuity or usufruct of R100 per annum for life of: (A) a female who becomes entitled thereto at the age of 42 years 3 months, or (B) a male who becomes entitled thereto at the age of 65 years 9 months.

	(A)	(B)
Age when acquired	42 years 3 months	65 years 9 months
Age next birthday	43 years	66 years
Present value of R1 per annum for life	R8,130 12	R6,007 26
Therefore present value of R100 per annum for life equals	R813,01	R600,73

TABLE B

PRESENT VALUE OF R1 PER ANNUM CAPITALISED AT 12 PER CENT OVER FIXED PERIODS

Years	Amount	Years	Amount
1	0.8929	51	8.3076
2	1.6900	52	8.3104
3	2.4018	53	8.3128
4	3.0374	54	8.3150
5	3.6048	55	8.3170
6	4.1114	56	8.3187
7	4.5638	57	8.3203
8	4.9676	58	8.3217
9	5.3282	59	8.3229
10	5.6502	60	8.3240
11	5.9377	61	8.3250
12	6.1944	62	8.3259
13	6.4236	63	8.3267
14	6.6282	64	8.3274
15	6.8109	65	8.3281
16	6.9740	66	8.3286
17	7.1196	67	8.3291
18	7.2497	68	8.3296
19	7.3658	69	8.3300
20	7.4694	70	8.3303
21	7.5620	71	8.3307
22	7.6446	72	8.3310
23	7.7184	73	8.3312
24	7.7843	74	8.3314
25	7.8431	75	8.3316
26	7.8957	76	8.3318
27	7.9426	77	8.3320
28	7.9844	78	8.3321
29	8.0218	79	8.3323
30	8.0552	80	8.3324
31	8.0850	81	8.3325
32	8.1116	82	8.3326
33	8.1354	83	8.3326
34	8.1566	84	8.3327
35	8.1755	85	8.3328
36	8.1924	86	8.3328
37	8.2075	87	8.3329
38	8.2210	88	8.3330
39	8.2330	89	8.3330
40	8.2438	90	8.3330
41	8.2534	91	8.3331
42	8.2619	92	8.3331
43	8.2696	93	8.3331
44	8.2764	94	8.3331
45	8.2825	95	8.3332
46	8.2880	96	8.3332
47	8.2928	97	8.3332
48	8.2972	98	8.3332
49	8.3010	99	8.3332
50	8.3045	100	8.3332

N.B. - Fractions of a year are to be disregarded when using this table.

Example - Testator, who died on 1 April 1977 left to (A) an annuity or usufruct value R100 per annum, to terminate when (A) attains majority, which will occur, say, at 30 September 1987. This period is found to be 10 years 6 months, but is taken as 10 years.

Present value of R1 per annum for 10 years	= R5,650
Therefore present value of R100 per annum for 10 years	= R565,02