Your family will need cash when you die






Everyone will have a deceased estate that must legally be wound-up by the high courts. To ensure that your wishes about inheritance for those you care about gets managed properly, you are going to need the following:
   
A Legal Will that the high court will accept. If it's not correct, the court will decide who gets what and how much.
Cash to pay for all the deceased estate costs. Without cash, the courts will force the executor to sell your assets.
A consolidated list of all that you have. Without knowing everything, your beneficiaries could wait a long time to inherit.
An executor to wind-up your affairs. The courts will insist that an executor is appointed and they will charge fees.
Cash to pay for day-to-day expenses for your family. Without cash, your family won't be able to pay accounts and utilities.
Cash to pay the legal fees if a property needs to be transferred to a beneficiary. Without the cash, your house will be sold.
   



DECEASED ESTATE COSTS

These are the legislated fee that are charged to wind-up your deceased estate.

Executor fees In terms of current legislation the executor’s fee is 3.5% of the gross value of the estate assets plus 15 % VAT. That is 4.02% in total of the gross value of the estate assets as on date of death. In terms of current legislation the executor’s fee is 6% on income earned by the estate after date of death plus 15% VAT. That is 6.9% in total on income earned by the estate after date of death. 
Conveyancing attorney fees This fee is charged by a Conveyancing attorney to transfer the property into the beneficiary's name.
Property clearance fees To transfer a property, the municipality issues a certificate and you may need up-to 6 months of rates and taxes to be paid in advance.
Testamentary trustee fees This fee creates and manages the trust every year. Admin of trust = 1.5% on average
Masters fees The fee that is charged by the Master of the high court for deceased estate purposes.
Administration fees 2 adverts are placed in the local newspaper and the government gazette.
Creditors against the estate This could be new bond costs, bad debt, card accounts, overdrafts, and interests etc
Income TAX or capital gains An assessment would be done to determine what this cost might be, if any.
Rates and tax arrears The clearance certificate will only be issued if the rates and taxes are paid in advance. The period that has to be paid in advance varies from area to area but is normally about six months. This amount may not be readily available and needs to be planned for in advance.
Other costs These would be funeral fees, medical bills, paying utilities etc.




Estate planning is essential for young adults - even if you have little in the way of assets.









Example: Based on an estate of 1 million.


EXAMPLE


If you passed away and had a property.
[These figures are for illustration purposes only]



WHAT'S THE COST OF DYING?


Items Conventional Myprotector
Legal documents R3 000 *Included
Legal will storage R115 *Included
Executor fees R40 250 *Included
Conveyancing attorney and transfer duty fees R28 834 *Included
Property clearance fees R15 000 *Included
Testamentary trustee fees R0 000 *Included
Masters fees R2 100 *Included
Advertising fees R990 *Included
Creditors & debts against the estate R10 000 *Included
Income TAX or capital gains Unknown *Included
Other costs R10 000 *Included
     
CASH REQUIRED AT DEATH FOR A R1 MILLION ESTATE +- R110 289 R0
     
CASH REQUIRED AT DEATH FOR A R500 000 ESTATE +- R51 600 R0

*
Subject to threshold limits alongside our zero cost services







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