Question 1

How much does an executor charge in South Africa?

Accepted Answer

An executor charges 3.5% of the gross estate value (excluding retirement funds and policies paid to named beneficiaries), plus 6% on post-death income collected. If the executor is a VAT vendor, 15% VAT is added to the fee. This is set by Regulation 8, Schedule 2 of the Administration of Estates Act 66 of 1965.

Question 2

What is the Master's fee on a deceased estate in South Africa?

Accepted Answer

The Master of the High Court charges nothing on estates below R250 000, R600 on estates between R250 000 and R400 000, and R600 plus R200 for every R100 000 (or part thereof) above R400 000, capped at R7 000 for estates of R3.6 million or more.

Question 3

Does estate duty apply to a bequest to a spouse?

Accepted Answer

No. Under section 4(q) of the Estate Duty Act, bequests to a surviving spouse or qualifying life partner are fully deductible before estate duty is calculated. The unused portion of the R3.5 million abatement also rolls over to the surviving spouse's estate.

Question 4

Is CGT payable when you die in South Africa?

Accepted Answer

Yes. Death is a deemed disposal of all assets under paragraph 40 of the Eighth Schedule to the Income Tax Act. Your estate pays CGT on the gain. A R2 million exclusion applies to the primary residence (para. 45) and a special R300 000 annual exclusion applies at death (para. 5(2)). Assets bequeathed to a surviving spouse are exempt via a rollover.

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