How Much Does an Executor or Lawyer Charge in South Africa?

When someone passes away, family members are often left wondering what it will cost to wind up the estate. Executor and legal fees are regulated by law, but the final bill still depends on the size and complexity of the estate. Here is what you can expect to pay.

What Is an Executor’s Fee?

An executor is the person appointed to administer a deceased estate, from reporting the death to the Master of the High Court through to paying debts and distributing what remains to the heirs.

Whoever takes on the role, whether a family member, an attorney, or a trust company, needs to understand what fee they are entitled to charge before accepting it. Our wills and estate planning team regularly guides both executors and beneficiaries through this process.

The Statutory Executor’s Fee

South African law caps the executor’s remuneration under the Master of the High Court, at 3.5% (plus VAT) of the gross value of the estate’s assets, along with 6% (plus VAT) on any income the estate collects after the date of death, such as interest or rental income. These figures are maximums, not fixed rates. A testator can specify a lower fee, or no fee at all, in a properly drafted will, and family members who act as executor often waive or reduce the fee altogether.

Master’s Office and Other Administration Costs

Executor’s fees are only part of the bill. The Master’s Office charges its own scaled fee for overseeing the process, which falls away entirely for estates worth under R250 000.

Add to that the cost of advertising for creditors in the Government Gazette and a local newspaper, and, where a bond of security is required, an annual charge worked out on the gross asset value. If the estate includes a house that needs to be transferred to an heir, property transfer costs come in on top of everything else, although a surviving spouse is usually exempt from transfer duty.

When a Lawyer or Trust Company Charges Separately

Many families appoint an attorney to act as executor, or to assist a family member who has been nominated for the role. In these cases, the 3.5% executor fee usually covers the legal work involved in the administration itself, though separate legal fees can apply for related matters, such as registering a trust to hold assets on behalf of minor beneficiaries, or resolving a dispute among heirs. Income collected by the estate may also carry its own tax implications, which SARS sets out in detail.

How to Keep Costs Down

A little planning goes a long way. Naming your executor and agreeing their fee in advance avoids disputes later, and keeping estate funds in a properly managed trust account rather than moving assets through the estate more than once is worth discussing with your attorney while you are still able to plan ahead.

Get Clarity on Executor and Legal Fees

Estate costs can be confusing, particularly at an already difficult time.

Our attorneys can walk you through exactly what an executor or lawyer is entitled to charge for your specific estate, and help you plan ahead so your family is not caught by surprise. CONTACT US today.