Last Will and Testament, do not forget to provide for these important costs
Category Lifestyle
A primary objective of a Will is to ensure that your property and wealth is dealt with in accordance with your wishes and your loved ones are taken care of.
Aside from leaving clear instructions and appointing an executor so that your estate can be dealt with efficiently, it is also vital to make provision for various administrative costs which will be payable by your estate.
According to Seeff's attorneys, STBB, these costs would apply whether or not you leave a Will behind. The first, is the executor's fee per the standard tariff at 3.5% plus VAT on the gross value of the assets (excluding investments/policies with named beneficiaries). The Master's fee ranges from R600 to R7 000, depending on the value of the estate. Four estate advertisements must also be placed in the Government Gazette and local newspaper at a cost of about R1 600. A bond of security will also need to be provided if the will has not exempted the executor from providing same.
Also provide for accounting fees to manage the tax affairs including tax returns to date of death, any post death taxes, obtaining income tax and VAT clearance certificates and payment of outstanding taxes to SARS. Estate duty will be payable to SARS on the value of investments including those with named beneficiaries.
Further accounting and/or legal fees will apply for managing and attending to any transfer of shares and other business interests as well as the transfer motor vehicles to heirs (including roadworthy inspections). Provision should also be made for any accrual which may be claimed by the surviving spouse.
Costs specific to real estate include the costs to transfer the immovable property/ies, exclusive of transfer duty as inheritance transfers are exempt from transfer duty. If there is a bond on the property, there would also be bond cancellation costs and possibly substitution of debtor costs should an heir assume liability for the bond on the property.
Capital Gains Tax would also be payable on transfer of any secondary properties and other assets which are subject to CGT.
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Author: Gina Meintjes
