Updated · General information, not advice · TitanDC
What the tariff allows
The fee is prescribed rather than negotiated from nothing, which means a family can work out the likely cost in advance. A will can fix a different remuneration, an executor can agree to take less, and the Master can reduce or increase it for special reasons, or disallow it where an executor has not done the job properly.
- 3.5% of the gross value of the estate’s assets
- 6% of income accrued and collected by the estate after the date of death
- VAT in addition, where the executor is a registered VAT vendor
- The tariff is the default, not a fixed price — a lower fee can be agreed, ideally in the will
- The Master of the High Court taxes the remuneration and oversees the administration
Gross, not net — why the number surprises people
The fee is calculated on what the estate owns, not on what is left after what it owes. A home with a large bond still counts at its full value for the fee, even though the family may inherit very little equity in it.
- A R4 000 000 house with a R3 000 000 bond counts as R4 000 000 for the fee
- At 3.5%, that house alone attracts R140 000 before VAT
- Debts reduce what heirs receive; they do not reduce the fee
- This is a common misunderstanding about estate costs
The other costs alongside it
The executor’s fee is a large and predictable cost, but it is not the only one. Together these determine how much cash an estate needs.
- Master’s fees, on a sliding scale according to estate value
- Advertising the estate as required by the Act
- Conveyancing costs where property transfers
- Valuations, and appraiser’s fees where needed
- Estate duty, where the estate exceeds the abatement
- Capital gains tax arising from the deemed disposal at death
- Bank charges and the cost of running the estate account
Planning for liquidity is the practical answer
The problem is rarely that the costs exist; it is that many of them fall due before the estate has the cash to pay them. Without accessible cash, assets may have to be sold to raise it, sometimes including the family home.
- Work out the likely total: executor’s fee, Master’s fees, duty, CGT, debts
- Compare that against cash the estate can actually reach
- Life cover payable to the ESTATE creates liquidity where it is needed — a nominated policy pays the person, not the estate
- Consider whether the will should agree a fee, and with whom
- Review it when the estate changes shape, not once when the will was signed
Common questions
How much is an executor allowed to charge?+
Unless the will fixes the remuneration, the tariff under the Administration of Estates Act provides for 3.5% of the gross value of the estate’s assets, plus 6% of income the estate collects after death, plus VAT where applicable. An executor can agree to less, and the Master may reduce or increase the remuneration for special reasons.
Is the fee calculated before or after debts?+
Before. It is charged on the gross value of the assets, so a bonded property counts at its full value even where the equity is small. This is why estate costs are usually higher than families expect.
Can the executor’s fee be negotiated?+
Yes. A fee can be agreed in the will, or negotiated with the executor, and many professional executors will agree a reduced rate — particularly on a large or straightforward estate. It is worth doing while drafting the will, not afterwards.
Does life cover reduce executor’s fees?+
It depends who it is paid to. A policy paid to a nominated beneficiary falls outside the estate and attracts no executor’s fee on that amount. A policy paid to the estate does attract the fee — but it also creates the cash the estate needs to pay its costs without selling assets.
Who appoints the executor?+
You nominate an executor in your will, and the Master of the High Court formally appoints them by issuing letters of executorship, or letters of authority for a small estate. Where there is no valid will, the Master appoints an executor.
Sources
This page cites the legislation and regulators it relies on, so you can check it.
- Administration of Estates Act 66 of 1965 (South African Government)
- Administration of Estates Act: Regulations, GN R473 of 1972, including the tariff of executor’s remuneration (Department of Justice)
- South African Revenue Service — Estate Duty
- Department of Justice — Deceased Estates and the Master of the High Court
General information about the administration of deceased estates in South Africa, not advice. Tariffs, taxes and their application change and depend on the estate. Figures used are illustrative only. TitanDC is an authorised financial services provider, FSP 8972.