What is common disaster clause?
In the event of both husband and wife perish together, and the times of death could not be established, the older person would be deemed to have died first (usually the older person was a man.) His estate would be subject to estate duty before passing on to his wife (spouse.) What happens if the wife, after inherited part or all of the husband’s estate? Her estate which now includes the husband’s, would be estate dutiable. The wife’s share in the husband’s estate (partly or all) would be subject to estate duty twice. To avoid paying twice the estate duty, it is advisable to include a common disaster clause in the will.
