Why is it important to have a Will ?

If you do not have a WILL:

  • The Intestate Succession Act will determine who your heirs are and how much each will inherit. That might not be what you want.
  • Nobody will know who you wanted as Executor. Your family members will have to agree on who the Executor must be. They may disagree or not be close by to sign a nomination. The administration of the estate will be delayed and might costs a lot more (because you did not state in a Will that the Executor is exempted from giving security).
  • Your minor children’s inheritance will be held by the Guardian’s Fund at the Master of the Supreme Court until they are 18.
  • Your minor children might be left without a guardian to support and assist them.

How must I sign my will ?

  • When any WILL is signed, 3 persons must be present: the person whose WILL it is and two witnesses (older than 14 and not heirs in terms of the WILL).
  • The Person whose WILL it is must sign EVERY PAGE in FULL as CLOSE AS POSSIBLE to the written text.
  • The WITNESSES must sign the LAST PAGE of the WILL in FULL next to the signature of the Person whose will it is.
  • The WILL is INVALID, if not signed correctly.

Do you need a living will?

A living will is not the same thing as a will. A living will is an instruction to caregivers about your end-of-life wishes. It ensures that your final death wishes are carried out legally and without unnecessary delay, heartbreak and medical costs. Should the time come that you can no longer make decisions that affect your health and future, a living will is to stand as your directive and constitutes proof of your wishes

How much will I pay for a Will ?

Basic single Will – R150.00

Basic Joint Will – R250.00

Download the Instruction Form form for a tailor made Single Will @ R350.00
Download the Instruction Form for a tailor made Joint Will @ R450.00

Deceased Estates

What are the steps in the administration process ?

The administration of a Deceased Estate (over R250 000-00) may take several months to complete. We will attend to the various legal requirements, guide and assist you through the entire process

  1. Obtain all the required documents and information (see below) to report estate with Master.
  2. Apply for the Letters of Executorship / Authority from the Master.
  3. Advertise for creditors and debtors in local newspaper and Government Gazette
  4. Report and deal with assets (as determined in the Will or as instructed by the heirs).
  5. Compile a Liquidation- and Distribution Account (indicting all the assets, liabilities, costs, who the heirs are and what each will receive).
  6. Lodge the Liquidation- and Distribution Account with the Master for approval.
  7. Advertise the Liquidation- and Distribution Account in local newspaper and Government Gazette.
  8. Pay creditors and heirs and transfer immovable property.
  9. Lodge final documents and obtain release from duties from the Master.

The administration of a Deceased Estate (under R250 000-00) may take a shorter period to complete and is less expensive, since steps 3, 5, 6 and 7 are not legally required.

What documents are needed to report an estate to the Master ?

  • Original Will (if any)
  • Identity document of deceased
  • Death Certificate
  • Marriage Certificate (if applicable)
  • Antenuptial Agreement (if applicable)
  • Identity document of Executor / Representative of Estate
  • Completed Death Notice  form – J294
  • Completed Next-of-Kin Affidavit – J192 (if the deceased did not leave a valid will or did not mention heirs by their names in the Will)
  • Completed Inventory form – J243, showing all the assets of the deceased
  • Nominations by the heirs for the appointment of an executor in the case of an intestate estate, or where no executor has been nominated in the will, or the nominated executor has died or declines the appointment.
  • For estates more than R250 000-00:  Acceptance of Trust as Executor – J190
  • For estates less than R250 000-00:  Acceptance of Master’s Directions – J155
  • Undertaking and bond of security – J262 (unless the nominated executor has been exempted from providing security in the will, or is the parent, spouse or child of the deceased)

List of other information and documentation required

Depending of what is in the Estate, we will require the following information and documentation.

  1. Proof of last address of Deceased
  2. Proof of address of Executor
  3. Marriage Certificate
  4. Antenuptial Agreement
  5. Details of all bank accounts and investments
  6. Details of all shares and share certificates
  7. Title Deeds of Property
  8. Bond Information
  9. Insurance information
  10. Motor vehicle information
  11. List of valuable movable assets (furniture, household effects etc.)
  12. Income tax information
  13. All other account details e.g. TV license, Municipality, Medical Aid, M-Net/Multi Choice etc.
  14. Pension details
  15. Details of Life Policy, Retirement Annuity, and other policies
  16. Names, addresses, phone numbers, banking details of all heirs, together with copies of their identity documents, banking details and proof of addresses.
  17. Names and contact details of all creditors
  18. Names and contact details of all debtors
  19. Details regarding funeral costs and paid by whom
  20. Details of accountant responsible for income tax returns

What costs are involved ?

It is important to know what costs may be involved in order plan the administration of the Estate and ensure that there is enough cash available in the Estate to pay for the costs and liabilities.

FUNERAL COSTS

  • Estimated between R8 000-00 and R25 000-00.
  • Consider a Funeral Policy to cover the funeral costs
  • If the costs are paid by an heir, it can be refunded from the estate

MASTER’S FEES PAYABLE TO THE MASTER OF THE HIGH COURT.

  • Estates less than R250 000-00: no fees are payable
  • Estates between R250 000-00 and R400 000-00: R600-00
  • Estates more that R400 00-00: R600-00 plus a further R200-00 for every R100 000-00 (or portion thereof) of estate value up to a maximum fee of R7 000-00 (which will be reached at an estate value of R3 600 000-00).

ADVERTISING COSTS

  • Estates less than R250 000-00: no advertisements are required
  • Estates more than R250 000-00: approximately R1 500-00

 

 

EXECUTORS FEES plus VAT (if applicable), is calculated on the gross value of the estate (all the assets)

  • 3.5% of all the assets
  • 6% of all income received after death
  • Our fees are less due to our business structure. Contact us for a quotation.

BOND OF SECURITY COSTS are calculated on the gross value of the estate (all the assets)

  • A percentage of approximately 0,684%
  • Can be prevented if the executor is exempted in the Will from security, or if a spouse or child is appointed as executor

SWORN VALUATIONS

  • A percentage of the value of the asset, calculated on a sliding scale starting at R500-00 up to R76 200-00 (for estate of a R100 million)
  • Only needed if Master requires sworn valuations or estate duty is payable.

ESTATE DUTY (TAX) is calculated on the net value of the estate (all the assets less all the liabilities and allowed deductions)

  • Estates less than R3 500 000-00: no estate duty
  • Estates inherited by spouse: no estate duty
  • Estates more than R3 500 000-00: 20% of the portion over R3 500 000-00 up to R30 million
  • Estates more than R3 500 000-00: an additional 25% of the portion over R30 million

FINAL INCOME TAX RETURNS

  • Fees of Accountant estimated between R600-00 and R2 500-00 per tax year required

CAPITAL GAINS TAX

  • Effectively 18% of the capital gain on all non-exempt capital assets
  • R300 000-00 death exclusion

TRANSFER COSTS OF FIXED PROPERTY

  • No transfer duty is payable if transferred to an heir
  • Conveyancer’s fees are calculated on value of property transferred, and may be between R5 000-00 up to R49 660-00 (on a property of R5 million) – contact us for a quote
  • Deeds Office costs are calculated on value of property transferred, and may be between R39-00 up to R5 435-00 (on a property of R20 million)
  • Other transfer costs (such as Transfer duty exemptions, clearance certificates) approximately R3 300-00
  • If property is sold out of the estate, the Purchaser normally pays the Transfer costs and fees.

BOND CANCELLATION COSTS in respect of bonds registered over fixed property in the estate

  • Payable by estate, even if property is sold
  • Estimated R4 800-00

Kindly contact us for more information or a quotation