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Once you die, your loved ones are left with heartache and a whole load of additional burdens in the form of legal fees and expenses. You can help avoid this by understanding these legal fees and expenses which will help you prepare for them and ensure that these costs are covered and the burden on your loved ones is reduced. Let’s take a look at some of the common costs of dying.
Executor Fees
This is the industry standard fee charged by the Executor or assisting professional to wind-up your Estate. A maximum of 3.5% + VAT of your Estate will be charged. Example: An Estate worth R3 Million will pay R120 750 in fees.
Conveyancing Attorney Fees
This is the fee charged by the Conveyancing Attorney when property needs to be transferred. For example, a home that is worth R1 850 000 being transferred to a Beneficiary will cost R30 544 in fees to the Estate.
Testamentary Trust Fees
This is the fee charged by the Trustees to administer the Trust you create in terms of your Will, normally to look after the money you leave to your minor children. On average, 1.15% of the net asset value is charged to establish the Trust, and 1.6% is charged annually for the ongoing administration of the Trust. For example: The total cost of R1.5 Million in assets over 15 years is R377 250.
Masters Fees
The fee paid to the Master of the High Court regarding the fulfilment of their role in the administration of your Estate.
Correspondence Fees
Fees associated with corresponding with the Master of the High Court.
Clearance Fees
One of the requirements to transfer a property is obtaining a clearance certificate from the city council or municipality. This will be issued only if the rates and taxes are paid in advance. Some areas require up to 6 months paid in advance.
Advertisement Costs
Two advertisements have to be placed in a local newspaper and the Government Gazette. The costs can vary between R1 000 and R1 500 depending on the publication selected.
Inheritance Tax
Not only will all outstanding taxes have to be paid from the Estate before it may be finalised, but also the Executor will have to determine whether Capital Gains Tax (CGT) or Estate Duty is payable at death.
Ongoing Short-term Bills
Bills such as medical aid, schools fees, car insurance, water, lights, rates, etc. still need to be paid even though bank accounts are frozen.
Other Immediate Expenses
Costs associated with arranging a funeral such as catering, travel and other expenses. These fees eat away at the legacy you plan to leave behind.
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