The short answer
Estate planning in South Africa starts with a valid will, which decides who inherits and who manages your estate. Without one, your assets are divided under the Intestate Succession Act, which may not match your wishes. On death, your estate can face estate duty of 20% on the dutiable value above a R3.5 million abatement (25% above R30 million), capital gains tax on a deemed disposal of assets, and executor’s fees of up to 3.5% plus VAT. Trusts, spousal bequests and adequate liquidity can reduce these costs significantly.
Nobody enjoys thinking about it, but estate planning is one of the kindest things you can do for the people you love. A clear, up-to-date plan means your family is not left guessing, waiting or paying more tax than necessary at an already difficult time.
This guide covers the essentials: wills, the costs your estate will face, how trusts fit in, and the questions to ask when you review your plan.
Why do you need a will?
If you die without a valid will (known as dying intestate), your estate is distributed according to the Intestate Succession Act. That formula looks only at your spouse and blood relatives. It does not consider a life partner you are not married to, stepchildren you raised, friends or charities, and it does not let you choose who looks after your estate or your minor children’s inheritance.
A will lets you:
- Decide exactly who inherits what
- Appoint an executor you trust
- Nominate a guardian for minor children
- Set up a testamentary trust so that children do not inherit outright at 18
- Plan for estate duty and liquidity in advance
What makes a will valid in South Africa?
The will must be in writing and signed by you on every page, in the presence of two competent witnesses aged 14 or older, who also sign. A witness, or the person who writes the will, should not be a beneficiary, as this can invalidate their inheritance. Keep the original in a safe place and tell your executor where it is.
What costs and taxes does an estate face?
| Cost | How it works |
|---|---|
| Estate duty | 20% of the dutiable estate above the R3.5 million abatement, and 25% on the portion above R30 million. Bequests to a surviving spouse are deductible, and any unused abatement can roll over to the surviving spouse. |
| Capital gains tax | On death you are treated as having sold your assets at market value. Gains above the annual exclusion for the year of death are taxed in your final income tax return. Assets left to a surviving spouse roll over without immediate CGT. |
| Executor’s fees | Up to 3.5% of the gross value of the estate, plus VAT, unless a lower fee is agreed in advance. |
| Other costs | Master’s fees, conveyancing for transferring property, advertising costs and any outstanding debts and taxes. |
A common and painful problem is liquidity. An estate may be worth a lot on paper but have little cash. If there is not enough cash to pay these costs, the executor may have to sell assets, such as the family home, that you intended to leave to someone. Life cover payable to the estate, or a cash reserve, is a simple way to avoid this.
How do trusts fit into estate planning?
A trust is a legal arrangement where trustees hold and manage assets for beneficiaries. There are two main types:
Testamentary trust
Created in your will and only comes into existence when you die. It is ideal for protecting the inheritance of minor children or vulnerable beneficiaries, so that trustees manage the money until they are older.
Inter vivos (living) trust
Created during your lifetime. Assets transferred into the trust no longer form part of your personal estate, which can freeze the growth of those assets for estate duty purposes and protect them from creditors. However, trusts are taxed at higher rates than individuals, and anti-avoidance rules (such as section 7C of the Income Tax Act on interest-free loans to trusts) mean they need careful structuring and annual administration.
A trust is a powerful tool, but it is not right for everyone. It should be set up for clear reasons, with independent advice, and run properly every year.
When should you review your estate plan?
Review your will and plan at least every three to five years, and immediately after any major life event:
- Marriage, divorce or a new life partner
- The birth or adoption of a child or grandchild
- Buying or selling property or a business
- Emigrating or acquiring assets in another country
- The death of a beneficiary, executor or guardian named in your will
- Significant changes in tax law
Business owners have an extra layer to consider: what happens to the business, who can run it, and whether a buy-and-sell agreement funded by insurance is in place. Our guide to CIPC annual returns and beneficial ownership also explains why company records need to be in order for a smooth transfer.
How Stratwell helps
We help families and business owners draft wills, set up and administer trusts, plan for estate duty and liquidity, and support executors through the administration of deceased estates. Together with our financial planning partners, we make sure the plan works as a whole. See our estate and trust planning service or book a confidential conversation.
Frequently asked questions
Is there inheritance tax in South Africa?
South Africa does not have a separate inheritance tax paid by beneficiaries. Instead, the estate pays estate duty before assets are distributed, together with capital gains tax in the deceased’s final tax return.
Do I pay estate duty if I leave everything to my spouse?
No. Bequests to a surviving spouse are deductible for estate duty, and the unused portion of the R3.5 million abatement can be carried over, giving the surviving spouse up to R7 million in total.
Can I write my own will?
Yes, a self-written will is valid if it meets the formal requirements. However, mistakes in wording or signing are common and can cause disputes or delays, so professional drafting is worth the cost.
How long does it take to wind up an estate?
A straightforward estate typically takes six months to a year. Complex estates, missing documents or disputes can take considerably longer.
This article is general information based on South African law as at October 2026 and is not legal, tax or financial advice. Please speak to a qualified professional about your personal circumstances.
