The formula
Executor’s fee = 3.5% × gross value of assets + 6% × income accrued and collected after death Total = fee + 15% VAT (if the executor is a VAT vendor)
“Gross value” means the value of the assets before debts are deducted, so the fee on an estate with a large bond is still calculated on the full property value.
Worked examples
R3 million estate administered by a bank
3.5% of R3 million is R105 000, plus 6% of R40 000 income (R2 400). With VAT the fee is R123 510.
Calculation
- 3.5% of gross assets
- R105 000.00
- 6% of income after death
- R2 400.00
- Executor’s remuneration
- R107 400.00
- VAT (15%)
- R16 110.00
- Total
- R123 510.00
The same estate at an agreed 2%
Agreeing a lower fee in advance can save tens of thousands of rand.
Calculation
- 2% of gross assets
- R60 000.00
- 6% of income after death
- R2 400.00
- Executor’s remuneration
- R62 400.00
- VAT (15%)
- R9 360.00
- Total
- R71 760.00
Frequently asked questions
How much can an executor charge?
The prescribed tariff allows a maximum of 3.5% of the gross value of the estate’s assets plus 6% of income earned and collected after death. VAT is added if the executor is VAT registered.
Can executor fees be negotiated?
Yes. The 3.5% is a maximum, not a fixed fee. You can agree a lower rate in your will or in writing with the executor. Heirs can also ask an executor to reduce the fee.
When is the executor paid?
Only after the Master of the High Court has approved the liquidation and distribution account and it has lain open for inspection without objection.
Does a family member acting as executor charge VAT?
Usually not, unless they are registered as a VAT vendor. Banks, trust companies and law firms generally are.