Quick Facts

• You can write a will from age 16 in South Africa
• Basic wills cost R0-R3,000 to draft (some free during National Wills Week)
• Executor fees are up to 3.5% + VAT of your estate value
• Estate duty is 20% on estates over R3.5 million
• Report a death to Master of High Court within 14 days
• Without a will, government decides who inherits your assets

1. What is Estate Planning?

Estate planning is deciding what happens to everything you own when you die. This includes your house, car, money, furniture, and other belongings. It also covers who will look after your minor children.

Your “estate” means all your assets (what you own) minus your debts (what you owe). Good estate planning protects your family from stress and financial problems.

What Estate Planning Covers

Writing a will: A legal document stating who gets what

Choosing an executor: Someone to manage your estate

Naming guardians: Who looks after your children under 18

Planning for taxes: Reducing what your family must pay

Setting up trusts: Protecting money for children or vulnerable family

Arranging life insurance: Covering debts and funeral costs

✅ 2. Why You Need a Will

A will is the most important document in estate planning. Without a valid will, the Intestate Succession Act decides who inherits. This may not match your wishes.

What Happens Without a Will

Your spouse may not get everything: The law divides assets between spouse and children

Unmarried partners get nothing: Long-term partners have no automatic rights

Stepchildren may be excluded: They are not automatic heirs

Government chooses guardians: Court decides who raises your children

Children’s money goes to Guardian’s Fund: Very conservative investment until age 18

Long delays: Sorting out intestate estates takes much longer

Benefits of Having a Will

You decide who inherits: Leave assets to anyone you choose

Protect your family: Provide for spouse, children, and dependants

Choose guardians: Name who raises your children

Avoid family fights: Clear instructions prevent disputes

Save time and money: Faster estate processing

Set up trusts: Protect money for minor children

3. How to Write a Valid Will in South Africa

The Wills Act of 1953 sets out strict requirements. Your will must meet these rules to be legally valid.

Legal Requirements

Age: You must be at least 16 years old

Sound mind: You must understand what you are doing

In writing: Must be a paper document, not verbal

Your signature: You must sign at the end of the will

Two witnesses: Must be over 14 years old

Witness signatures: Must sign in your presence

Not beneficiaries: Witnesses cannot inherit from your will

What to Include in Your Will

Personal details: Your full name, ID number, address

Revocation clause: Cancels all previous wills

Executor appointment: Who will manage your estate

Guardian nomination: Who looks after minor children

Specific bequests: Who gets particular items

Residue clause: What happens to everything else

Trust provisions: If setting up trusts for beneficiaries

Cost to Write a Will

Service	Cost
Free basic will (National Wills Week)	R0
Online will services	R500 – R1,500
Simple will with attorney	R1,000 – R2,000
Complex will (trusts, multiple assets)	R2,000 – R5,000+

Where to Get Help Writing a Will

Attorneys: Specialize in estate planning and wills

Banks: Often offer will services to clients

Trust companies: Professional executor and will services

Online services: Legal Wills, SA Wills, and similar platforms

Financial advisers: May provide will drafting as part of planning

4. Choosing Your Executor

An executor is the person or company responsible for managing your estate after death. They collect assets, pay debts, and distribute inheritance to beneficiaries.

What Executors Do

Report death: To Master of High Court within 14 days

Apply for Letters of Executorship: Get authority from Master

Advertise for creditors: In Government Gazette and newspaper

Collect all assets: Money, property, investments, belongings

Pay all debts: Outstanding bills, taxes, funeral costs

Prepare accounts: Liquidation and Distribution Account

Distribute inheritance: Give assets to beneficiaries as per will

Close estate: Final report to Master of High Court

Types of Executors

Family member executor: A relative or friend you trust

Advantages: May waive fees, knows family dynamics, personally invested

Disadvantages: May lack experience, emotional involvement, potential family conflict

Professional executor: Attorney, bank, or trust company

Advantages: Experienced, impartial, follows legal requirements, handles complex estates

Disadvantages: Charges full fees, may be impersonal

Executor Fees (2025)

Estate Value	Maximum Fee	Example Cost
R500,000	3.5% + VAT	R20,125
R1 million	3.5% + VAT	R40,250
R2 million	3.5% + VAT	R80,500
R3 million	3.5% + VAT	R120,750

Note: Executors can also charge 6% + VAT on income earned after death. Family executors may waive or reduce fees.

5. All Estate Costs and Fees

Dying comes with significant costs. Your estate must have enough cash to pay these before beneficiaries receive inheritance.

Complete Cost Breakdown

Cost Type	Amount
Executor’s Fee	Up to 3.5% + VAT of estate
Attorney Fees (if assisting)	0.5% – 1.5% of estate OR hourly rate
Master’s Fees	Based on estate value (minimal)
Conveyancing Fees (property transfer)	Sliding scale (R1.85m house = ~R30,500)
Bond Cancellation	~R5,000+
Asset Valuations	Varies by appraiser
Advertising Costs	Government Gazette + newspaper
Capital Gains Tax	18% on deemed disposal gains
Estate Duty	20% on estates over R3.5 million
Testamentary Trust Fees	Annual admin fees if trust created

Real Example: R2 Million Estate

Executor fee: R80,500

Attorney assistance: R20,000

Property transfer: R30,000

Bond cancellation: R5,000

Advertising: R2,000

Other costs: R5,000

TOTAL COSTS: ~R142,500 (7% of estate)

This means beneficiaries receive approximately R1,857,500 instead of R2 million.

6. Estate Duty and Taxes (2025)

Estate duty is tax on the value of your estate when you die. Understanding these taxes helps you plan to protect more for your family.

Estate Duty Rates

Estate Value	Tax Rate
First R3.5 million	0% (exempt)
R3.5 million – R30 million	20%
Over R30 million	25%

Important Estate Duty Facts

R3.5 million abatement: First R3.5 million is tax-free

Portable between spouses: Unused abatement transfers to surviving spouse

Worldwide assets: Includes all assets globally if SA resident

Spouse exemption: Assets left to spouse are exempt

Deductions allowed: Debts, funeral costs, executor fees

Capital Gains Tax at Death

Death triggers “deemed disposal” meaning all assets are treated as sold. Capital gains tax applies at 18% on gains exceeding exclusions.

Primary residence exclusion: First R2 million gain exempt

CGT rate: 18% for individuals on taxable gains

Annual exclusion: R40,000 (not applicable at death)

Donations Tax

If you give away assets before death to reduce estate duty, donations tax may apply at 20% on amounts over R100,000 per year.

Annual exemption: R100,000 per person per year

Spouse donations: Unlimited donations between spouses exempt

Donations tax rate: 20% on amounts above exemption

7. Trusts for Protecting Your Family

A trust is a legal arrangement where assets are held by trustees for the benefit of beneficiaries. Trusts protect money for children, vulnerable family members, or future generations.

Testamentary Trust (Will Trust)

Created in your will and activated when you die. Most common for protecting minor children’s inheritance.

Best for: Minor children who cannot inherit until age 18

Advantages: No setup costs, controlled inheritance, better investment than Guardian’s Fund

How it works: Money stays in trust with trustees managing it for children’s benefit

Payment terms: You decide when children get money (age 18, 21, 25, etc.)

Registration: No cost, Master of High Court approves after your death

Inter Vivos Trust (Living Trust)

Created while you are alive. Used for asset protection, tax planning, and generational wealth transfer.

Best for: Protecting assets from creditors, business owners, high-value estates

Setup cost: Legal fees to draft trust deed

Registration fee: Payable to Master of High Court (check current rates)

Annual costs: Professional trustee fees R20,000-R100,000+ per year

Tax implications: Trusts taxed at flat rate, careful planning needed

Special Trusts (Disability Trusts)

For beneficiaries with physical or mental disabilities. Receives favorable tax treatment as special “Type A” trust.

Tax benefit: Taxed like an individual (18%-45%) instead of flat trust rate

CGT exclusions: R40,000 annual exclusion, R2 million primary residence

Purpose: Ensure disabled family member has financial support

When to Consider a Trust

Minor children: They cannot legally inherit until 18

Vulnerable beneficiaries: Disabled family members, spendthrifts

Large estates: Estate duty planning and wealth protection

Business assets: Protecting family business across generations

Second marriages: Balancing interests of current spouse and children

Creditor protection: Shielding assets from business risks

Trust vs Guardian’s Fund

Without a testamentary trust, children’s inheritance goes to the Master’s Guardian’s Fund until they turn 18.

Feature	Guardian’s Fund	Testamentary Trust
Investment approach	Very conservative	Flexible, growth-focused
Access for expenses	Limited (up to R250,000)	Full access as needed
Full payout age	Age 18 (full amount)	You decide (staggered ok)
Your control	None	Full (set terms)
Costs	None	Trustee fees apply

✅ 8. Master of the High Court Process

The Master of the High Court supervises all deceased estates in South Africa. Understanding this process helps your family act quickly and correctly.

Step 1: Report the Death (Within 14 Days)

Where to report: Master’s Office where deceased lived for 12 months before death

Who can report: Executor, family member, anyone with the will or assets

Online option: Deceased Estate Online Registration System (since October 2023)

Documents Needed

Death certificate: From Department of Home Affairs

Identity document: Of deceased

Original will: If available

Marriage certificate: If applicable

Death notice form: Provided by Master’s Office

Inventory of assets: List of what deceased owned

Step 2: Apply for Letters of Executorship

For estates over R250,000, the Master issues Letters of Executorship. For smaller estates (under R250,000), Letters of Authority are issued with simplified process.

Processing time: 2-8 weeks typically

Security bond: May be required for full value of estate

Exemption: Will may exempt executor from security bond

Step 3: Advertise for Creditors

Once appointed, executor must advertise in Government Gazette and local newspaper. Creditors have 30 days to submit claims.

Step 4: Prepare Liquidation Account

Executor prepares detailed account showing all assets, debts, costs, and how inheritance will be distributed. Master reviews and approves.

Step 5: Account Lies for Inspection (21 Days)

Account is advertised again. Beneficiaries and interested parties can inspect and object at Master’s Office or Magistrate’s Court.

Step 6: Distribution and Estate Closure

If no objections, executor distributes assets to beneficiaries. Final report submitted to Master. Estate officially closed.

Total timeframe: 6-18 months typical, longer if complex or disputes

Master’s Offices in South Africa

Eastern Cape: Bisho, Grahamstown, Mthatha, Port Elizabeth

Free State: Bloemfontein

Gauteng: Johannesburg, Pretoria

KwaZulu-Natal: Durban, Pietermaritzburg

Limpopo: Thohoyandou

Mpumalanga: Nelspruit

Northern Cape: Kimberley

North West: Mafikeng

Western Cape: Cape Town

🚨 9. Estate Planning and Inheritance Scams

Criminals target grieving families and vulnerable people with estate-related fraud. Be extremely vigilant during this difficult time.

Inheritance Fraud Scams

How it works: You receive an email or letter claiming you inherited millions from a distant relative abroad (usually Nigeria, Ivory Coast, or other African countries).

The scammer claims to be: A lawyer, banker, government official, or estate executor

They provide: Official-looking documents, fake wills, forged passports

They ask for: Upfront fees for taxes, legal costs, transfer fees, or processing

Reality: There is no inheritance. Once you pay, they disappear.

WARNING: Legitimate inheritances NEVER require upfront payment. Taxes and costs are paid from the estate itself.

Deceased Estate Fraud

Criminals target estates of recently deceased people to steal money and assets.

Fake executors: Criminals claim to be appointed executors with fraudulent documents

Forged wills: Criminals create fake wills naming themselves as beneficiaries

Impersonating officials: Posing as bank staff, Master’s Office, insurance agents

Accessing accounts: Withdrawing money before estate is frozen

Identity theft: Using deceased’s information for fraud

Romance Scam + Inheritance Fraud

Scammer builds romantic relationship online, then claims to have inheritance but needs your help to access it.

They claim: Gold, money, or property inheritance from deceased relative

They ask you: To receive inheritance on their behalf or pay fees

Common locations: Ghana, Nigeria, Malaysia, Philippines, Russia, Ukraine, South Africa

How to Protect Your Family’s Estate

Immediately contact all financial institutions: Banks, insurance, pension funds

Update contact details: Change to family/executor details immediately

Close accounts properly: Request closing statements, transfer to estate account

Secure documents: Keep will, ID, certificates in safe place

Verify all communications: Call institutions directly using known numbers

Check Letters of Executorship: Master’s Office now issues QR codes to verify authenticity

Never give documents to anyone: Except Master’s Office officials

Report suspicious activity: To police, SABRIC, Master’s Office

Red Flags – Report Immediately

❌ Anyone asking for upfront payment to release inheritance

❌ Emails from lawyers/officials in other countries about unknown relatives

❌ Requests to send money via Western Union or bank wire

❌ Pressure to act quickly without time to verify

❌ Documents with spelling errors or unprofessional appearance

❌ Claims you must keep inheritance secret

❌ Someone you met online asking for financial help

❌ Calls from unknown “executors” you did not appoint

✅ 10. Your Estate Planning Action Plan

Follow these steps to protect your family. Do not delay. Completing this now gives peace of mind.

Step 1: List Your Assets and Debts

Assets: Property, vehicles, bank accounts, investments, pension, life insurance, furniture, jewelry

Debts: Mortgage bonds, vehicle finance, credit cards, personal loans, store accounts

Result: Calculate your net estate value (assets minus debts)

Step 2: Write Your Will

Option A – Free: Wait for National Wills Week (usually September)

Option B – Affordable: Use online will service (R500-R1,500)

Option C – Professional: Attorney or trust company (R1,000-R5,000+)

Important: Complex estates need professional help

Step 3: Choose Your Executor Carefully

Consider: Honesty, organizational skills, availability, financial knowledge

Options: Trusted family member, professional executor (attorney/bank/trust company)

Smart move: Name backup executor in case first choice cannot serve

Step 4: Name Guardians for Minor Children

Critical: If both parents die, court decides who raises your children without a will

Discuss with guardians: Make sure they are willing and able

Consider: Similar values, financial stability, location, age, health

Step 5: Decide on Trusts for Children

If you have minor children: Set up testamentary trust in your will

Decide payout ages: Age 18, 21, 25, or staggered payments

Name trustees: Who will manage money for children’s benefit

Set instructions: What money can be used for (education, living, medical)

Step 6: Review Life Insurance

Purpose: Cover estate costs, debts, provide for family

Calculate needs: Executor fees, estate duty, debts, funeral, family support

Check beneficiaries: Make sure nominations are current

Step 7: Organize Important Documents

Keep together: ID, will, marriage certificate, birth certificates, property deeds, insurance policies

Tell family: Where documents are stored

Give executor: List of assets, debts, account numbers, passwords (secure method)

Step 8: Update Your Will Regularly

When to update: Marriage, divorce, birth of children, death of beneficiary, major asset changes

Review: Every 3-5 years or after major life changes

Method: Create new will (cancels old one) or add codicil for small changes

Step 9: Tell Your Family

Inform executor: That you appointed them, where will is stored

Tell family: That you have a will (not necessarily details)

Avoid surprises: Discuss major decisions if appropriate

Important Contact Numbers

Organization	Contact	Purpose
Master of High Court	www.justice.gov.za/master	Estate administration, deceased estates
Financial Sector Conduct Authority (FSCA)	0800 110 443	Financial complaints, scams
SARS (Estate Tax)	0800 00 7277	Estate duty, tax matters
SABRIC (Fraud)	www.sabric.co.za	Report estate and banking fraud
Department of Home Affairs	0800 60 11 90	Death certificates, IDs
Law Society of South Africa	www.lssa.org.za	Find attorneys, verify credentials
Fiduciary Institute of Southern Africa	www.fisa.net.za	Fiduciary practitioners, estate planning

Estate planning protects your family when you cannot. Every South African adult should have a valid will, regardless of how much they own. Without a will, government decides who inherits your assets and who raises your children.

Start with a basic will during National Wills Week (free) or use affordable online services. As your estate grows more complex, upgrade to professional assistance. Choose executors carefully – they manage your entire estate. Consider testamentary trusts if you have minor children to avoid money going to Guardian’s Fund.

Be extremely vigilant against inheritance scams. Legitimate inheritances NEVER require upfront payment. All inheritance taxes and costs are paid from the estate itself through the Master of the High Court. If contacted about an unexpected inheritance, especially from abroad, it is a scam.

Review and update your will every 3-5 years and after major life changes like marriage, divorce, births, or deaths. Tell your executor where documents are stored. Consider life insurance to cover estate costs so beneficiaries receive full inheritance.

Most important: Do not delay. Complete your estate planning today. It gives peace of mind knowing your family is protected and your wishes will be respected when you are gone.