Estate Liabilities To Consider In Your Will
Do you have enough liquidity in your estate to settle these administration and related claims which may be payable by your estate?
Executor's Fees: In terms of current legislation, the tariff fees of office in force is 3.5% (plus VAT) calculated on the gross value of the estate (Executor's fees are not levied on assets which devolve in terms of a nomination, example life policies).
Master’s Fee: the amount payable per estate varies from R600 – R7 000, depending on the value of the estate.
Estate Advertisements: in total, four estate advertisements need to be placed in the Government Gazette and the local newspaper circulating in the area in which the deceased resided in the 12 months prior to their passing, totalling approximately R1 600.
Bond of Security: if your Will has not exempted the executor from providing same or if Intestate Succession applies and the Executor does not fall under one of the exemptions.
Conveyancing Costs: Although there is no transfer duty levied on the transfer of immovable properties bequeathed to a beneficiary, transfers costs will have to be paid.
Bond Cancellation Costs: or substitution of debtor costs where the heir will assume liability for the settlement of the bond on the property.
Accounting Fees: All outstanding tax returns have to be submitted to SARS.
SARS: All outstanding taxes due to SARS have to be settled (example Income Tax, Capital Gains Tax, VAT and so on).
Accounting and/or Legal Fees: to manage and attend to any transfer of shares and other business interests.
Accrual Claim: by your surviving spouse.
Motor Vehicles Transfer Costs: to heirs (including any roadworthy inspections).
Estate Duty to SARS: In those instances where beneficiaries are receiving their benefit by way of a nomination (example the proceeds received from a life policy) - in the event of the Estate being liable for Estate Duty, the beneficiary of the proceeds of the life policy will be liable for the apportioned estate duty levied on the value of their benefit.
Other Potential Claims: examples of these are funeral expenses, medical claims, credit cards, loans, sureties, clothing accounts, municipal accounts, insurance and so on.
These costs and others are applicable whether your estate is distributed in terms of a Will or in terms of Intestate Succession.
Contact our Estates Department on 041 363 6044 of firstname.lastname@example.org for advice and assistance in drafting your will.