Inheritance Planning Calculator South Africa
Calculate estate duty, executor fees and Master's fees payable on your estate — then compare planning strategies to reduce what SARS takes
Understanding Inheritance Planning in South Africa How to use • Formula • Example
How to Use This Calculator
Enter your property value and total estate value (all assets combined — property, investments, cash, retirement funds). Select whether you have a surviving spouse, and enter the number of heirs. The Estate Tax Planning tab shows the breakdown of estate duty, executor fees and Master's fees payable at death. Switch to Planning Strategies to compare four common approaches for reducing your estate's tax burden.
For the strategies tab, also enter your property's original base cost (purchase price plus improvements) and your marginal income tax rate — these are needed to estimate CGT on a trust transfer and the effective cost of each strategy.
The Estate Duty Formula
South African estate duty is levied under the Estate Duty Act 45 of 1955. The taxable amount is called the dutiable estate, which is the gross estate value less allowable deductions and the primary abatement:
Estate Duty = 20% × first R30M of dutiable estate + 25% × remainder
Key figures for 2025/2026:
- R3,500,000 — primary abatement (single / first-dying spouse)
- R7,000,000 — abatement for surviving spouse (Section 4A rollover)
- 20% — estate duty rate on first R30 million of dutiable estate
- 25% — estate duty rate above R30 million
- 3.5% + 15% VAT — executor's fee (tariff under Administration of Estates Act)
Executor fees of 3.5% of the gross estate value are charged by the executor plus VAT at 15%. The Master of the High Court charges a sliding-scale fee capped at R7,000.
Worked Example
Nomsa from Johannesburg passes away with an estate valued at R8,000,000, including her primary residence worth R3,500,000. She has two children as heirs and no surviving spouse.
Step 1 — Abatement: Nomsa is single, so the abatement is R3,500,000. Dutiable estate = R8,000,000 − R3,500,000 = R4,500,000.
Step 2 — Estate Duty: R4,500,000 × 20% = R900,000.
Step 3 — Executor Fees: R8,000,000 × 3.5% = R280,000 base + R42,000 VAT = R322,000.
Step 4 — Master's Fees: For an R8M estate = R4,000.
Total costs: R900,000 + R322,000 + R4,000 = R1,226,000 (effective rate: 15.33%). Each child inherits R3,387,000.
If Nomsa had donated R100,000/year to her children for 10 years, her estate would have reduced to R7,000,000. The dutiable estate would be R3,500,000 and estate duty only R700,000 — saving R200,000 in duty at zero donation tax cost.
Frequently Asked Questions
What is estate duty in South Africa and who pays it?
Estate duty is a tax levied on the estate of a deceased person before assets are distributed to heirs. It is administered under the Estate Duty Act 45 of 1955 and collected by SARS. The executor of the estate is responsible for paying it, typically from estate assets. Every estate valued above R3,500,000 (or R7,000,000 for a surviving spouse) is potentially liable. The rate is 20% on the first R30 million of the dutiable estate and 25% above R30 million.
How does a surviving spouse reduce estate duty in South Africa?
Under Section 4(q) of the Estate Duty Act, bequests to a surviving spouse are fully deductible from the dutiable estate — meaning no estate duty is payable on the first death if everything goes to the spouse. Additionally, Section 4A(2) provides that the surviving spouse inherits the unused portion of the first-dying spouse's abatement. If the first-dying spouse used none of their R3.5M abatement, the surviving spouse's estate effectively enjoys a R7,000,000 abatement. This is why spousal bequest planning is one of the most effective estate duty reduction strategies.
Can I use an inter vivos trust to avoid estate duty in South Africa?
Assets owned by an inter vivos (living) trust do not form part of your estate, so they are not subject to estate duty when you die. However, transferring assets into a trust triggers Capital Gains Tax (CGT) at the trust inclusion rate of 80%, and ongoing Section 7C deemed donations apply if you lend money to the trust interest-free — SARS treats the foregone interest as a taxable donation. You also incur setup costs (around R10,000) and annual compliance costs (auditor, trustee fees, tax returns). A trust works best when assets are expected to grow significantly in value, since future appreciation accrues outside your estate.
What is the annual donations tax exemption and how can it reduce estate duty?
Every South African individual can donate up to R100,000 per tax year free of donations tax. Donations above this amount attract tax at 20% (up to R30M cumulative) or 25% above. By systematically donating R100,000 per year to heirs, you reduce the size of your estate and therefore the eventual estate duty payable. Over 10 years, you can shift R1,000,000 out of your estate at zero tax cost — potentially saving up to R200,000 in estate duty. This strategy requires careful documentation to satisfy SARS that donations are genuine and unconditional.
What are executor fees and how are they calculated on a South African estate?
Executor fees are charged for administering the deceased estate and are governed by the Administration of Estates Act 66 of 1965. The prescribed tariff is 3.5% of the gross estate value, plus 15% VAT — making the effective rate 4.025%. On a R5,000,000 estate, executor fees come to R175,000 + R26,250 VAT = R201,250. These fees are often negotiable, particularly for larger estates or where the executor is a family member. Some attorneys charge a reduced rate for straightforward estates; professional executor companies may not negotiate.