Author: Refqah Ho-Yee
1 September 2020
ESTATE LIABILITIES TO CONSIDER IN YOUR WILL
Have you provided for these administration and related costs payable by your estate?
- The standard tariff executor fee is 3.5% plus VAT calculated on gross assets (this value excludes all investments / policies with named beneficiaries).
- The Master’s fee charged per estate: R 600 – R 7,000, depending on the value of the estate.
- Four estate advertisements need to be placed in the Government Gazette and local newspaper, totaling about R 1,600.
- A bond of security if your will has not exempted the executor from providing same.
- The transfer costs to transfer any immovable properties left to your heirs (no transfer duty is payable to SARS on inheritance transfers, but will be subject to transfer costs).
- Bond cancellation costs (or substitution of debtor costs where the heir will assume liability for the bond on the property).
- Accounting fees to submit all tax returns to date of death and manage any post death taxes, and to obtain relevant income tax and VAT clearance certificates.
- Any outstanding taxes payable to SARS.
- Accounting and / or legal fees to manage and attend to any transfer of shares and other business interests.
- Any accrual claim by your surviving spouse.
- Costs to transfer motor vehicles to heirs (including any roadworthy inspections).
- Estate duty payable to SARS. Be reminded that while the values of your investments are excluded from the estate value in calculating the 3.5% executor’s fee where there are named beneficiaries, most investments are deemed assets for calculation of estate duty.
- Capital Gains Tax – payable on transfer of any secondary properties and other assets attracting Capital Gains Tax.
These costs and others are applicable whether you leave a testate or intestate estate.
Contact us at firstname.lastname@example.org for advice and assistance in drafting your will.