The Cost of Goodbye 

Advocate Sankie Morata CFP, Chief Executive of Sanlam Trust 

The recent passing of beloved South African celebrities like Presley Chweneyagae reminds us how fragile life can be. It also brings to mind how unprepared we often are for saying goodbye to a loved one.  

Most of us are equally unprepared for the financial costs that follow soon after the emotional loss. Our grief can often be compounded by the burden of significant expenses, like funeral costs, executor fees and estate taxes. Administrative delays and family disputes could also come into it, making life even harder, especially if there was no clear estate plan and no last will and testament. 

A valid will and proper estate planning can make a big difference during these difficult times.  

It is never easy to talk about dying or think about a time when we may not be around. But putting off these conversations can leave the people we love in distress and cause terrible confusion. An estate plan isn’t a luxury, it’s taking care of your loved ones and their future, emotionally, legally, financially. 

By starting the conversation around end-of-life planning, we not only protect those closest to us, but also honour our own lives. 

Hidden Costs of Passing Away in SA – Anecdotally, many of us have heard that estates take long to wind up in South Africa. Durations of two to five years are not unheard of. However, there are also instances where the process could be concluded in 12 months.  

The duration usually depends on the complexity of an estate. For example, if a person owned multiple properties, they were a business owner, or they owned a firearm… these are factors that often increase the time it takes to finalise an estate. And the longer it takes, the more costly it becomes in terms of frozen accounts, lost income, and more.  

Of course, time is not the only cost – there are also specific fees payable, including: 

• Executor fees of 3.5% plus VAT (above R40 000 per R1 million estate value), and 6% plus VAT on income accrued and collected after death 

• Trust setup and management fees are calculated as a percentage of the assets in the estate, and could total hundreds of thousands over time 

• Conveyancing fees to transfer a property to its new owner 

• Master’s fees could range from R600 to R7 000, depending on the value of the estate  

• Estate duty of 20% on the dutiable value of an estate up to R30 million, and 25% on the amount above that; the first R3.5 million is exempt from estate duty 

• Legal fees, advertising costs and other admin expenses 

• Funeral expenses could vary widely, from as little as a few thousand rand to tens of thousands 

• Lost earnings if time must be taken off work to handle documentation, or for court processes 

• Emotional costs of grief and psychological trauma caused by protracted legal disputes, administrative delays and the financial pressures these create 

 It can all become completely overwhelming, especially where a spouse or partner falls away, leaving a sole breadwinner in a family, or the children are still minors. If there are no accessible funds (liquidity), a family could be forced to delay burial arrangements, or even sell their property. In circumstances such as these, we’ve seen homes having to be forfeited, families split, and children uprooted. This is when estate protection could make all the difference. 

 When You Don’t Have a Will, It’s the People You Love Who Pay the Price – Master’s Office records show that more than 70% of South Africans pass away without a valid will. Based on South African population numbers, this could include an estimated 8.8 million homeowners and 5 million single moms, people with dependents, property, and legacies to protect. Dying intestate (without a will) means you forfeit the right to have a say in what happens to your assets and possessions and who gets to inherit. 

Parents must consider their estate plans carefully and not put off drafting their wills, for the sake of their children. The implications for kids’ day-to-day needs can be significant if one or both parents pass away. In South Africa, with its many single-parent households, matters could be even worse. Think of a single mom passing away, or even worse, dying without a will. Her estate could still go to her children, but those benefits would first have to be paid into the government’s Guardian’s Fund, administered by the Master of the High Court. The only way for her beneficiaries (kids) to access the funds would be for the court-appointed guardian to apply to the Guardian’s Fund. This is a complex and time-consuming process. Meanwhile, who provides for the children? 

 Young people (wrongly!) assume they don’t need wills – Even people in their 20s who feel they don’t own enough assets to warrant drafting a will, probably already have an “estate”. They might have a cellphone contract, own a car, belong to a pension fund at work, or receive life cover as part of their remuneration package. Many young people don’t realise they have assets, and assume they don’t need a will. That’s how things go wrong. In South Africa, dying without a valid will means the law determines who inherits. You can’t choose a guardian for your minor children. You can’t decide where your most prized possessions will land up. You forfeit the chance to have a say. 

 He stresses that estate planning is not just for the wealthy or for older generations. You can shape your family’s future by protecting their financial well-being. Sanlam Legacy is working to change how estate administration is experienced in our country. We offer free will drafting, and, through our Sanlam Legacy Plan, we give the option of covering the unexpected costs of passing away. With one of our country’s largest estate administration teams in house, we take care of estates from beginning to end. 

When someone passes away, we assign two dedicated professionals to the bereaved next of kin – an Estate Consultant and an Estate Practitioner – to wind up their loved one’s affairs. We also provide access to a secure online tracking portal, where the progress of the estate can be viewed at any time. We aim to reduce unnecessary stress, lighten the admin load, and provide clarity and certainty at every step. 

 Cost is a major concern for many South Africans. Think about it this way: A 32-year-old with children and a R5 million estate would face R841 000 in estate fees – from executor fees to trust and conveyancing costs. For only R197.42 a month, a Sanlam Legacy Plan (gold) could cover all of this, and provide another R106 757 in liquidity to support the family. 
 
Whether a person opts for additional protection or not, Sanlam Legacy offers free will drafting and courier collection of the will, safe storage in fire- and water-resistant vaults, quick and easy retrieval, and 25% discount on executor, conveyancing and trust fees. This makes estate planning accessible to many more South Africans. There are also optional estate planning tools like living wills and testamentary trusts that let you spell out your personal preferences, from cremation to gifting heirlooms. 
 
I am proud of the fact that they finalise most of the estates on their books in 12 months. This is the confidence and peace of mind that we’re committed to delivering because not only is it about financial efficiency – it’s about honouring someone’s life by easing the burden on those they leave behind to help them move on with their lives. 

Planning for death may feel uncomfortable, but it’s also one of the most caring, generous and responsible things you can do. 

The Sanlam Legacy Plan offers a forward-thinking solution that integrates your will with affordable insurance to cover and indemnify your estate against legal fees and other immediate expenses after you pass away. This helps your loved ones avoid delays in the administration of your estate and can greatly alleviate their financial burden. There is no charge for drafting your will, amending it as often as you need to, and storing it securely in a fire- and water-resistant vault. You get to have confidence and peace of mind that your final wishes will be carried out and your loved ones supported when it matters most.