When drafting your Last Will, it is recommended that you select and nominate a professional executor to wind up your estate for the following reasons:
- A professional executor is experienced with the different procedures associated with administering different types of estates, as the process of administering an estate can differ depending on whether the deceased left a Will or not, whether the deceased was solvent at the time of his or her death and depending on the size of the deceased estate.
- A professional executor is experienced in dealing with the key role players in winding up a deceased estate, such as the Master of the High Court, the South African Revenue Service, and the Magistrates Courts where the Liquidation and Distribution Account of an estate needs to be advertised.
- A professional executor will also continuously follow up with the key role players, and often has contacts at the offices of the key role players, to ensure that the administration of the estate progresses as efficiently as possible.
- A professional executor will ensure that sufficient records regarding the administration of the estate are kept.
- A professional executor will have relationships with banking institutions which offer favourable interest rates on estate late banking accounts, which will maximise the interest that will accrue on any inheritance in the period between death and paying out such inheritance to the relevant beneficiary.
- Should you have any beneficiaries located overseas, a professional executor often would have had experience in paying over an inheritance to a beneficiary located overseas, which is more administratively burdensome than paying out to local beneficiaries.
- A professional executor will have relationships with other professionals who are required to assist in the administration of an estate, such as accountants who deal with deceased estates when assistance is required with any tax or reporting requirements.
- A professional executor is experienced in dealing with any issues which may arise in administering an estate such as any conflict between heirs. A professional executor will be able to draw on their experience to find solutions to such issues or to mediate such issues.
- A professional executor will be able to make the process of dealing with the loss of a loved one just a little bit easier by providing support to the deceased’s family, by guiding them through the process of winding up an estate, and by providing the heirs and family with frequent updates on the administration process.
Executor’s Fees: In winding up an estate, an executor is entitled to be remunerated for providing such service. Most executors will charge their fee according to the Tariff in terms of section 8(1) of the Administration of Estates Act: Regulations, which states that, “The executor’s remuneration referred to in section 51(1) (b) of the Act shall be assessed according to the following tariff:
- On the gross value of assets in an estate: 3,5 percent,
- On income accrued and collected after the death of the deceased: 6 percent”.
If an executor is VAT registered, he or she is also entitled to charge VAT on such executor’s fees.
Reynolds Attorneys offers a discounted executor’s fee should you choose to nominate us as the executor in your Last Will. Our fees for our professional executor services are as follows:
- On the gross value of assets in an estate: 2 percent plus V.A.T. (subject to a minimum fee of R15 000.00),
- On income accrued and collected after the death of the deceased: 6 percent plus V.A.T.