Most South Africans think estate planning is only about having a will. A will is important, but it is not the full picture.
When someone passes away, the estate may face several layers of cost before the family receives what is left. Estate duty is one of the biggest costs people know about, but it is not the only one. Executor fees, capital gains tax, administration costs, liquidity problems, and poor structuring can all reduce what your family eventually receives.
In South Africa, SARS allows a basic estate duty abatement of R3.5 million. After that, estate duty is calculated on the dutiable value of the estate. SARS currently applies estate duty at 20% on the first R30 million of dutiable estate value and 25% above R30 million.
That means your estate plan should not be based on guesswork.
Imagine a person owns a family home, investment properties, a business interest, retirement savings, vehicles, and an investment portfolio. On paper, the family may look secure. But when the estate is wound up, assets need to be valued, debts need to be settled, taxes may need to be considered, and the executor must administer the estate.
The problem is often not that there was no wealth. The problem is that the wealth was not structured properly.
A strong estate plan should ask:
- What will my estate be worth at market value?
- Will my family have enough cash to settle costs?
- Will my business survive without me?
- Are my beneficiaries updated?
- Are my assets held in the correct structures?
- Will my family know what to do immediately?
Money Secrets SA helps South Africans understand these risks before they become a crisis. The goal is not to create fear. The goal is to make the numbers visible.
You can also read why estate duty is not the only cost your family should worry about, and why market value matters when your estate is calculated.