Amrith Bishoon,  Executive Manager at Sanlam Legacy

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.

Amrith Bishoon, Sanlam Legacy Executive Manager says, “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.

Bishoon says 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, and 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,” Bishoon advises.

“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,” explains Bishoon.

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 right to have a say.

Bishoon 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 South Africa. 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 can take care of the estate 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.”

He adds, “We are also mindful that cost is a major concern. For example, a 32-year-old with 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.

Bishoon says they are 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.”

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

ENDS