Administration of Deceased Estates Fees: The Costs of Dying in South Africa
Administering the estate of a deceased loved one can be a daunting task, particularly when it comes to navigating the legal complexities and associated costs. One of the key considerations in this process is understanding how much your attorney is entitled to for their services. This article aims to shed light on the various fees and charges involved in administering a deceased estate in South Africa.
Attorney Fees aka Executor's Fee:
Attorneys typically charge a fee for their services in administering a deceased estate. This fee is regulated by law and is based on a percentage of the gross value of the estate, as well as any growth it experiences during the administration process. In South Africa, attorneys can charge a fee of 3.5% on the gross value of the estate and an additional 6% on any growth the estate experiences. Additionally, some attorneys may charge an opening file and taking instructions fee, which can range from R1500 to R2500.
Liabilities and Additional Costs:
In addition to attorney fees, there are various other expenses and liabilities that an estate may incur during the administration process. These include:
1. Section 29 and 35 Adverts: The estate may be required to place adverts calling upon creditors to come forward with any claims they may have against the estate.
2. Final Liquidation and Distribution Account Advert: An advert may need to be placed notifying interested parties of the final liquidation and distribution account.
3. Miscellaneous Fees: The estate may incur miscellaneous fees such as postage, petty cash expenses, and bank charges.
4. Master of the High Court Fees: The Master of the High Court also charges a fee for their services in overseeing deceased estates.
5. Transfer Fees: If the estate includes property, there may be transfer fees associated with transferring ownership of the property.
6. Estate Duty: Depending on the value of the estate, estate duty may be payable to the South African Revenue Service (SARS).
7. Valuations: In cases where the estate includes special assets, such as artwork or collectibles, valuations from experts may be required.
Approval by the Master of the High Court: It's important to note that all fees charged on the estate are subject to the approval of the Master of the High Court. This ensures that the fees charged are reasonable and in accordance with the law.
Obtaining a Clear Picture: To gain a clear understanding of the assets and liabilities of the estate, it's advisable to request the liquidation and distribution account approved by the Master of the High Court from your attorney. This document provides a comprehensive overview of the financial affairs of the estate and can help you make informed decisions throughout the administration process.
In conclusion, administering a deceased estate involves various fees and charges, including attorney fees, liabilities, and additional costs. By understanding these costs and seeking transparency from your attorney, you can navigate the process more effectively and ensure that the estate is administered in accordance with the law.
Looking for expert guidance in navigating the complexities of deceased estates? Look no further than MJM Attorneys Inc. Our firm specialises in handling deceased estates with care and expertise. If you require assistance with estate administration, don't hesitate to reach out to us at 015 023 0013 or 079 809 1300. Our dedicated team is here to support you every step of the way.