No one enjoys thinking about the costs that arise after a death, but careful planning for estate expenses is one of the biggest gifts you can leave your family. In South Africa, the administration of a deceased estate triggers a sequence of fees, taxes, professional costs and practical outlays that must be paid before heirs can receive their inheritance. If there isn’t enough cash available, assets may need to be sold quickly, often at a discount, and the winding-up process can drag on for months. This guide explains what counts as estate expenses, the most common costs to prepare for, what happens when you don’t plan for them, and how to build these realities into a robust estate plan.
What are “estate expenses”?
“Estate expenses” are the costs that arise to wind up a deceased person’s financial affairs and lawfully transfer assets to heirs. They include statutory charges set by law or regulation, professional fees for the specialists who administer the estate, taxes triggered by death or by the sale of assets, and practical costs for securing, valuing and maintaining property while the estate is being finalised. In South Africa, these expenses are paid out of the estate before any distributions to beneficiaries. If the estate is short of cash, the executor must raise liquidity—usually by calling in investments or selling assets.
The most common estate expenses in South Africa
Executor’s remuneration and administration charges
The executor is entitled to remuneration according to a tariff or a negotiated fee. In addition, there are advertising costs (to notify creditors and to lodge the Liquidation & Distribution Account for inspection), bank charges on the estate account, postage and petties, and often a bond of security unless the Will waives it or a professional executor is appointed. These are core estate expenses that every estate must expect.
Master’s Office and Deeds Office charges
The Master of the High Court levies a fee based on the gross value of the estate. If property is transferred or sold, the Deeds Office charges registration and transfer fees, and the conveyancer will bill professional fees to attend to the transfer or bond cancellation.
Property-related costs
Rates and taxes, levies for sectional title schemes or homeowners’ associations, compliance certificates (electrical, gas and, in some coastal regions, beetle), and ongoing insurance premiums remain payable. If the property is bonded, interest continues to run until transfer or settlement. Where a property is sold, you’ll also need municipal rates clearance and, sometimes, remedial work to obtain compliance—another line in the Estate expenses column.
Professional valuations and specialist reports
Immovable property, collectables, private company shares and business interests often require formal valuations to support the Liquidation & Distribution Account. Where a business exists, auditors may need to produce financial statements to date of death. Art, jewellery and vehicles may need appraisals for market value and insurance.
Taxes and revenue authority assessments
Death can trigger multiple taxes. There’s income tax up to the date of death and for any income the estate earns during administration, capital gains tax on the deemed disposal of many assets at death (subject to rollovers and exclusions), and estate duty on the dutiable estate above the statutory thresholds. Transfer duty or VAT may also arise depending on how property is disposed of. These are among the most material estate expenses in larger estates.
Debts and contractual obligations
Credit cards, personal loans, vehicle finance, bond instalments, medical bills and any business-related liabilities are paid from the estate. Debit orders don’t stop themselves—another reason liquidity planning matters. If the deceased stood surety for a business, the estate may need to settle or renegotiate those obligations.
Maintenance of dependants and pets
During administration, the estate may be responsible for reasonable maintenance of a surviving spouse, minor children or other legal dependants, as well as pet care costs if provided for. Practical outlays—school fees, medical aid, groceries—often arrive before life policies pay, increasing immediate liquidity needs.
Funeral and memorial costs
Funeral policies can help, but not all estates have them or they may not pay out immediately. Venue, transport, catering, tombstones and related costs add up quickly and must be budgeted for as near-term estate expenses.
Storage, security and travel
If a property will stand vacant, the estate may need to pay for alarm monitoring, caretaker services or short-term storage for household contents. Executors and professionals may incur travel costs for out-of-town assets.
Consequences of not preparing for estate expenses
The most common consequence is “asset-rich, cash-poor” distress. Without cash, the executor must sell assets to fund estate expenses—often on a tight timeline and in a soft market. Properties can fall into arrears on rates or levies, making transfer harder and more expensive. Delays in paying SARS can attract interest and penalties. Family members may feel pressured to front money, hoping to be reimbursed later, which can cause conflict. Valuable assets may deteriorate without insurance or maintenance. In the worst cases, the estate becomes insolvent, leaving heirs with nothing after creditor claims.
How to plan for Estate expenses
A practical estate plan begins with a cash-flow estimate for the first six to twelve months after death. Quantify likely estate expenses—executor fees, Master’s charges, advertising, valuations, property holding costs, professional fees, taxes and debt service—and then identify reliable sources of cash to meet them.
In many estates, a dedicated life policy payable to the estate functions as the “engine room” for liquidity. Some families prefer a blended approach: one policy payable to the estate for statutory and administrative costs, and another payable directly to a spouse or testamentary trust for day-to-day living needs (because personal bank accounts may be restricted pending appointment of the executor). Keep a modest reserve in a money-market investment specifically earmarked for the estate’s running costs; it can save forced sales and avoidable penalties.
Make it easy for your executor to act: keep municipal and levy accounts current, file the latest tax returns, store compliance certificates with your Will, and maintain an asset register that clearly states where originals (title deeds, share certificates) are kept. If you own a business, a funded buy-and-sell agreement can inject cash into the estate and avoid deadlocks. Where minors or vulnerable beneficiaries are involved, build a testamentary trust with clear rules for emergency distributions so the household can function while the estate is wound up. Finally, reduce expensive consumer debt during your lifetime; every rand not owed is a rand that doesn’t need to be found later.
Special considerations for South African families
Marital regimes matter. In community of property estates, only half the joint estate forms the deceased estate, but joint debts and shared estate expenses must still be settled. With accrual, an accrual claim is calculated before distribution, affecting liquidity. Cross-border assets add layers—foreign probate equivalents, translations and legalisation—so expect extra professional fees and timelines. If a property is occupied by an heir or tenant, agree on occupational rent and responsibilities early to prevent disputes and arrears. And remember: retirement funds are allocated by fund trustees and do not automatically provide immediate cash to the estate, so don’t rely on them to cover early Estate expenses.
The payoff of proper preparation
When estate expenses are anticipated and funded, everything moves faster. The executor can pay creditors on time, maintain and insure assets properly, secure favourable sale prices where necessary, and deliver clearer, earlier distributions to heirs. The difference in family stress levels is dramatic. Good planning is not about spending more—it’s about knowing what will be spent, when, and from where, so value is preserved for those you love.
If you’d like a clear, numbers-driven estimate of your estate expenses and a funding plan that protects your heirs from delays and distress sales, the fiduciary team at Crest Trust can help—from modelling and policy structuring to acting as executor or independent trustee.
FAQs
What is the estate expense cover?
It’s a dedicated life-insurance policy designed to provide immediate liquidity for Estate expenses such as executor fees, Master’s charges, taxes, property holding costs, valuations and professional fees. Paying the proceeds to the estate gives the executor cash to keep the process moving without forced sales.
What is an expense of the estate?
Any lawful cost incurred to administer and wind up the estate—statutory fees, professional charges, advertising, property compliance, insurance and security, valuations, taxes and the settlement of debts—is an expense of the estate and is paid before heirs receive distributions.
What can be deducted from an estate?
Allowable deductions typically include funeral expenses, administration costs (executor remuneration and fees), debts due at date of death, property-holding costs during administration, certain professional fees, and qualifying bequests (for example, to a surviving spouse or approved charities) when calculating estate-duty exposure. The exact treatment depends on the facts and current tax rules.
What all is included in an estate?
Generally, all assets owned by the deceased—immovable property, vehicles, bank accounts, investments, retirement-fund lump sums where they accrue to the estate, business interests, personal belongings, and claims—together with liabilities. Some assets pass outside the estate (for example, certain policy proceeds paid directly to a nominated beneficiary), but their existence still affects planning for Estate expenses and overall liquidity.