The hidden costs of dying without a will

What is the impact of leaving your loved ones to navigate your passing without a will? According to Sanlam Legacy, the cost of goodbye spans emotional, financial, and time-related burdens, and these can be overwhelming without proper planning in place.

Your nearest and dearest will be left to deal with far more than their grief. The costs will span funeral expenses, executor fees, estate taxes, and administrative delays. And perhaps most sadly, their relationships may be compromised as family disputes unfortunately arise all too often if a deceased’s wishes are not clearly and legally spelt out.

 Master’s Office records show that more than 70% of South Africans pass away without a valid will. Based on South African population numbers, that means around 5 million single mothers and 8.8 million homeowners die without a will.

Dying is never easy to talk about, but avoiding these conversations can leave the people we love facing unnecessary distress and confusion. Estate planning isn’t a luxury. It’s a vital act of care – emotionally, legally, and financially – for anyone who wants to protect their family’s future.

  Hidden Costs of Passing Away in SA

Anecdotal evidence suggests that estates take a long time 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 depends primarily on the complexity of an estate. For example, if a person owned multiple properties, was a business owner, or owned a firearm, these are factors that often increase the time it takes to finalise an estate. And the longer it takes, the costlier 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, which are calculated as a percentage of the assets in the estate, could total hundreds of thousands over time.
• The conveyancing fees to transfer a property to its new owner
• Master’s fees, which 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, which 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 and court processes
• The emotional costs of grief and the psychological trauma caused by protracted legal disputes, administrative delays, and the financial pressures these create

The costs can be overwhelming, especially where there is only one breadwinner in a family, or the children are still minors. If there are no accessible funds (known as ‘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.

"I’m young, I don’t need a will.”

We hear this all too often, but even if you’re still in your twenties and you feel like you don’t own enough assets to warrant drafting a will, you probably already have an ‘estate’. You might have a cell phone contract, own a car, belong to a pension fund at work, or receive life cover as part of your 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 end up. You forfeit the right to have a say.

Estate planning is not just for the wealthy or older generations. You can shape your family’s future by protecting their financial well-being.

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

* Bishoon is the executive manager at Sanlam Legacy.

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