3.5%
The executor’s pay is distinct from the administration fee and is still permitted at 3.5% on the gross value of the assets and 6% on income after the date of death.
The Administration of Estates Act 66 of 1965 specifies that the Executor is entitled to the following compensation:
As specified by the deceased in his or her testament; or
The Master will tax the goods in accordance with the tariff.
Fixing a fee in the Will is not typical practice (though it can be done), because the value of the estate fluctuates and the kind of assets can change between the date of execution of the Will and the date of death.
The executor is entitled to 3.5% of the gross value of assets in an estate and 6% of income accrued and received after the death of the dead, according to tariff.
What assets are exempt from executor fees?
Executor costs do not apply to certain assets, such as:
Insurance plans that have a beneficiary designation (unless the policy is paid to the estate)
Policies in which the dead was not the owner and the income were not paid to the estate.
Prior to death, the dead enjoyed usufructs.
Benefits from a retirement fund
Can I bargain for executor fees?
When you are preparing your will, you should try to negotiate the executor’s price after you have designated one. The amount might then be specified in the will, or the executor could be asked to affirm the agreed sum in writing.
What rights does an executor have?
An executor may deduct reasonable fees paid during the administration from the estate. These are expenses that they have borne on their own. The executor must be able to demonstrate how these costs benefitted the estate and its beneficiaries. There is no definitive list of what is or is not an executor’s expense.
