How to Reduce Executor’s Fees on Your Estate
Executor’s fees are one of the biggest costs families face when winding up an estate, but the amount is not always fixed. With some planning ahead of time, it is possible to legitimately reduce what an estate pays out in fees, leaving more for the people you intended to benefit.
Understanding the Fee Cap
South African law caps executor’s remuneration at 3.5 percent, plus VAT, of the gross value of the estate’s assets, along with 6 percent, plus VAT, on any income the estate collects after the date of death.
These are maximum rates set by law, not fixed amounts, which is exactly where the opportunity to reduce them comes in. For a full breakdown of how executor and legal fees are calculated(opens in new tab), see our detailed guide.
Nominate an Executor in Your Will
One of the simplest ways to control fees is to specify the executor’s remuneration directly in your will. A testator can name a lower fee than the statutory maximum, or specify that a family member acting as executor waives the fee altogether.
Without this instruction, the default maximum tends to apply, so this is a decision worth making while drafting or updating your will rather than leaving it to be settled later.
Negotiate the Fee Upfront
Where an attorney or trust company is appointed as executor, the fee percentage can often be negotiated before the appointment is finalised, particularly for larger or more straightforward estates.
Raising this conversation early, ideally while the will is being drafted, gives your family more room to agree on a fair rate rather than accepting the statutory maximum by default.
Structure the Estate to Reduce Complexity
Fees are calculated on the gross value of the estate’s assets, so estates with fewer moving parts tend to cost less to administer.
Consolidating investments, keeping clear records of asset ownership, and avoiding unnecessary complexity in how assets are held can all reduce the time and value the fee is calculated against. It also helps to understand mistakes that quietly drive up estate costs(opens in new tab), since disputes and unclear instructions add both time and cost to the full estate winding-up process(opens in new tab).
Consider Whether a Letter of Authority Applies
Smaller estates worth R250 000 or less may not need a full executor appointment at all. Understanding whether your estate needs a Letter of Executorship or a Letter of Authority(opens in new tab) early on can mean a lighter, less costly process for the family involved, since Letter of Authority estates skip several of the more expensive steps in full executorship.
Plan Ahead to Avoid Delay-Related Costs
Fee reduction is not only about the percentage charged. Delays add cost too, whether through additional professional time, storage of assets, or accruing interest on outstanding matters.
Knowing how long estate administration usually takes(opens in new tab) helps families budget realistically and avoid the kind of last-minute scrambling that tends to push costs up.
Get the Right Advice Before You Need It
Reducing executor’s fees is far easier when it is planned for in advance rather than negotiated after someone has already passed away. Our wills and estate planning team(opens in new tab) can help you structure your will and your estate to keep costs down for the people you leave behind.