National Wills Week is a timely reminder for South Africans to prioritise drafting a will. While a will is essential to formalise your wishes and ensure your loved ones are provided for, financial experts caution that it is only the first step.
Hidden costs, particularly executor fees, can take a sizeable bite out of the inheritance you intend to leave behind.
Bertie Nel, Momentum’s Head of Financial Planning and Advice, explains that although a will outlines how your estate should be distributed, it does not cover the actual cost of winding it up.
“Your estate, the collective value of your property, investments, and personal belongings, must be administered legally. This comes at a cost, and executors are entitled to charge up to 3.5% of the gross value of the estate, plus 6% of any income earned after death,” he says.
Executor fees a cost to consider
On an estate worth R2 million, executor fees alone could reach R70,000 before VAT — a hefty amount that is calculated on the gross value, not the net value after debts. This often leaves families scrambling to liquidate assets, sometimes at below-market value, just to cover costs.
Nel also warns against assuming life insurance will automatically ease the burden: unless specifically structured to provide estate liquidity, most policies pay directly to beneficiaries and bypass the estate altogether.
Carin Meyer, FNB Product Head: Wills and Deceased Banking, stresses that the choice of executor can make or break the process.
“Appointing an inexperienced executor could end up costing your estate more, not just in money, but in time. While many people nominate a family member or friend, unless that person is a professional with experience in estate administration, it is often wiser to appoint a qualified expert,” she says.
Meyer adds that FNB Fiduciary’s team of attorneys is equipped to guide families through every stage of estate administration, from drafting a will to the final distribution of assets, with a focus on transparency and liquidity management.
Funeral covers more popular than wills
The importance of proper planning is further highlighted by the 2025 FNB Retirement Insights Survey. It revealed that while 60% of respondents have funeral cover, only four out of 10 have signed wills.
Even more concerning, a third admitted they had never considered drafting one. Myths about wills being relevant only to the wealthy remain prevalent, particularly among younger and lower-income groups, while others delay due to time constraints or uncertainty about heirs.
“Without a valid will, families can be left vulnerable at the worst possible time,” Meyer warns. “Engaging with fiduciary specialists ensures your assets are transferred to your loved ones in the most efficient and cost-effective way possible.”
Both Momentum and FNB agree that drafting a will is just one piece of the puzzle. True estate planning requires foresight, professional guidance, and careful structuring to ensure there is enough liquidity to cover fees and taxes.
Done properly, it safeguards your legacy, protects your loved ones from financial distress, and ensures your wishes are honoured without compromise.
