legal costs associated with dying . If there is not enough money to cover your legal costs , your Estate is illiquid and the Executor of your Estate may have to sell some of your assets to pay for the winding up of your Estate .
COSTS ASSOCIATED WITH PASSING AWAY : 1 . 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 the value of your Estate will be charged . An Estate worth R3 Million will pay , for example , approximately R120 750 in fees . In terms of South African Law , Executors may charge 3,5 % ( plus VAT ) of the gross Estate and 6 % ( plus VAT ) of any income into the Estate after death .
2 . CONVEYANCING ATTORNEY FEES
This is the fee charged by the Conveyancing Attorney when property needs to be transferred .
Fees are calculated on a sliding scale depending on the value of your house as determined by an assessor . A home worth R1 850 000 being transferred to a Beneficiary could cost the Estate R30 544 in fees .
3 . 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 . The total cost of a Trust with R1.5 million in assets over 15 years would be R377 250 . Please bear in mind that when you have a Legacy Protection PlanTM with Capital Legacy , all these fees are covered by the plan .
4 . MASTER ’ S FEES
The fees paid to the Master of the High Court regarding their fulfilment of their role in the administration of
SA Real Estate Investor Magazine DECEMBER 2022 / JANUARY 2023 111