Executor's fee calculator
2 points we are still verifying
- For a marriage in community of property, confirm with the Master whether the executor's 3.5% is levied on the whole joint estate or only the deceased's half (practice varies; the regulation says 'gross value of assets in an estate').
- Confirm promulgation of the VAT registration threshold amendment.
Your details
Executor's fee including VAT
R103 385.00
4.33% of the gross estate, with the Master's fee
- Master's fee
- R4 800.00
- Total of both
- R108 185.00
How we worked it out
- 3.5% of gross assetsR87 500.00
R2 500 000.00 × 3.5% (reg 8(1)(a))
- 6% of income collected after deathR2 400.00
R40 000.00 × 6% (reg 8(1)(b))
- Executor's fee before VATR89 900.00
- VAT at 15%R13 485.00
- Executor's feeR103 385.00
- Master's feesR4 800.00
Schedule 2 item 1 (deaths from 1 January 2018)
- TotalR108 185.00
How the executor's fee is worked out
- 3.5% of the gross value of the assets at the date of death, before debts are deducted (regulation 8(1)(a)).
- Plus 6% of income the executor collects after the death, such as rent, interest and dividends (regulation 8(1)(b)).
- The fee is at least R350.
- Plus VAT if the executor is a registered vendor.
Ways to keep the cost down
- Agree the fee in writing before the executor is appointed. Many banks and attorneys will negotiate, especially on larger estates.
- Assets that do not form part of the estate, such as life policies with a named beneficiary and retirement fund benefits, are paid directly and normally do not attract the tariff.
- For estates of R250 000 or less, the Master can issue a Letter of Authority to a family member, which is usually far cheaper.
Next, check whether estate duty is payable. The executor's fee is deductible from the estate before duty is calculated.
Frequently asked questions
Is 3.5% the maximum an executor can charge?
The tariff in regulation 8 is 3.5% of the gross value of the assets and 6% of income collected after death, with a minimum of R350. A will can set a different fee, and the Master can reduce or increase the fee if there are good reasons (s51). Families can also negotiate a lower fee before an executor is appointed.
Is VAT added to the executor's fee?
Only if the executor (or their firm) is a registered VAT vendor. Then VAT at 15% is added to the fee. A family member who acts as executor in their personal capacity usually does not charge VAT.
When is the executor paid?
Not before the liquidation and distribution account has lain open for inspection without objection, or objections have been dealt with, unless the Master agrees (s51(3)).
What are the Master's fees?
Under Schedule 2 of the regulations, no fee is payable on estates under R250 000. From R250 000 to under R400 000 the fee is R600, plus R200 for every complete R100 000 above R400 000, up to R7 000.
Does the fee apply to the whole joint estate in community of property?
The tariff is on the assets the executor administers. Practice differs on how it applies when the deceased was married in community of property, so ask the executor to explain their basis in writing. We flag this as a point still being verified.