Your will is probably the most important document you will ever sign in your life!
You must also keep in mind that the winding up of an estate are expensive. These are some of the fees that the estate must pay.
- Executors fees of 3.5% plus Vat on the total value of your Estate.
- All liabilities need to be settled.
- Capital Gains Tax.
- Estate Duty if applicable.
- Income Tax of the deceased and the estate need to be finalised and paid to SARS.
Cash is King
This brings me to the next problem.
There must be enough cash in the estate to cover these expenses. If the Executor do not have enough funds in the estate, he will have to sell assets for example your vehicle or house with severe impact on your spouse and children.
I beg you to speak to a financial planner to help you draw up a will land do a proper estate planning.