Costs

The following costs are typically payable from the funds in the estate during the execution of that estate:

• Master's fees payable to the Master of the High Court. The formula used to determine this is:

  
  

  • If the value of the estate exceeds R15 000 but is less than R17 000, then R42
  • If the value of the estate exceeds R17 000, then a further R6 is charged for each next full R2 000 by which the gross value exceeds R17 000

  • Subject to a maximum fee of R600

    
    

• Executors' remuneration, of which the maximum tariff is determined from time to time in the regulations to the Administration of Estates Act. The current maximum tariff (excluding VAT) is:

  
  

  • 3.5% on the gross value of the estate assets, including on the gross value of a community estate (excluding assets payable outside the estate direct to beneficiaries), and

  • 6% of all incomes (e.g. rentals, interest and dividends) which the executor collects on behalf of the estate from the date that you die to the date of final execution of your estate.

    
    

• Valuation costs of assets which have to be valued for estate purposes. The Master may insist that the assets of the estate must be valued by an sworn appraiser, and for that the sworn appraiser is entitled to a fee, which is calculated according to a sliding scale. The appraiser is also entitled to levy kilometre charges, which are also calculated on a scale determined from time to time. An sworn appraiser is a person appointed by the Master specifically for the valuation of assets in an estate. Amongst other things, the appraiser must have a good knowledge of property values in the area in which he is appointed. Appraisers are appointed to do valuations of assets in specific areas, and may not do valuations outside the relevant area.

• Advertising costs. The Administration of Estates Act stipulates that, in the case of each estate wherein an executor has been appointed, the executor must place the following advertisements: 

  
  

  • Calling upon creditors to prove their debts against the estate.
  • To give notice that the Liquidation and Distribution account will be open for inspection, mentioning the period and the place where the account will be open for inspection.
  • Both the above-mentioned advertisements must appear in one or more local newspapers published in the area where the deceased ordinarily resided, as well as in the Government Gazette.

  • If the deceased resided in another district within 12 months prior to date of death, the advertisement must also appear in one or more newspapers in that district.

    
    

• Costs for the provision of security in the form of a bond of security to the Master in cases where the executor does not qualify for an exemption. In terms of the Administration of Estates Act, only certain executors are exempt from the provision of security to the Master.
• If a nominated executor does not qualify for the exemption, the Master will insist that the nominated executor must first provide him with the necessary security for the value of the estate before the Master confirms the appointment of the nominated executor. The security must be in the form of a Bond of Security, issued by a short-term insurance company. The current annual rate for this amounts to 0,684% on the value of the security, with a minimum annual premium of R300-00.
• Bank charges in respect of the estate bank account, which, in terms of the Administration of Estates Act, must be opened in the name of the estate. Professional executors, who administer large numbers of estates, negotiate a favourable rate with the bank.
• Transfer costs of fixed property. Before an estate can be finalised, fixed property forming part of the estate must be transferred into the name of the rightful heir thereof in terms of the Deeds Registries Act. The costs involved are payable from the estate. The transfer costs are calculated according to the value of the fixed property, on a sliding scale. 
• Cancellation costs of bonds registered over fixed property in the estate. The executor must cancel all bonds registered over fixed property forming part of the estate after the outstanding balances on them have been settled in full. The costs involved are payable by the estate. The costs are calculated according to the amount of the bond, on a sliding scale.
• Funeral costs form part of the claims against the estate, and are payable from the funds of the estate.