Executor Duties
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The Executor’s Estate Bank Account: What It Is and How It Works
Quick Answer Every deceased estate needs a separate estate bank account opened by the executor with the letters of executorship. All assets are collected into it, debts and fees are paid from it, and the balance is distributed to heirs after the J187 account is advertised and confirmed. Image: Wikimedia Commons contributor, via Wikimedia Commons Why the Estate Needs Its Own Account From the moment of death, the deceased’s money belongs to the estate — not to the family. The executor must open a separate estate bank account to collect assets, pay debts and eventually distribute to heirs. Mixing estate money with personal accounts is the fastest way to land…
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Executor’s Fees in South Africa: The 3.5% Rule and VAT
Quick Answer Executor’s fees in South Africa are capped at 3.5% of the gross estate value plus 15% VAT — a legal maximum, not a fixed tariff. The fee must appear in the advertised liquidation and distribution account where heirs can inspect it. Image: Wikimedia Commons contributor, via Wikimedia Commons The 3.5% Maximum The Administration of Estates Act caps executor’s remuneration at 3.5% of the gross value of the estate. On top of that, VAT of 15% applies where the executor is registered (or must register) for VAT — a maximum effective rate of about 4%. The fee is charged on the gross value, before debts are deducted, so it…