Inheritance Property Calculator South Africa
Calculate the true cost of inheriting a property — estate duty, executor fees, Master's fees, bond settlement, transfer costs, and maintenance during estate administration
| Cost Item | Amount | % of Property |
|---|---|---|
| Estate Duty (pro-rata share) | R 0 | 0.0% |
| Executor Fees 3.5% + VAT (pro-rata) | R 60 375 | 4.0% |
| Master's Fees (pro-rata) | R 1 450 | 0.1% |
| Bond Settlement | R 0 | 0.0% |
| Conveyancing Fee (incl. VAT) | R 37 698 | 2.5% |
| Deeds Office Fee | R 1 738 | 0.1% |
| Transfer Duty (exempt) | R 0 | 0.0% |
| Maintenance (12 months @ R 8 000/mo) | R 96 000 | 6.4% |
| Total Cost to Inherit | R 197 261 | 13.2% |
Understanding Inheritance Costs
Inheriting a property in South Africa is not free. The estate incurs several costs before you can take ownership. Executor fees (3.5% + VAT), Master's fees, potential estate duty, plus ongoing running costs during administration which typically takes 12–18 months.
Key relief: Bequests to a surviving spouse are exempt from estate duty under Section 4(q) of the Estate Duty Act. Transfer duty does not apply to inheritances (only to sales). CGT base cost is stepped up to date-of-death value.
Understanding the Cost of Inheriting Property in South Africa How to use • Formula • Example
How to Use This Calculator
Enter the property value on the date of death and the total gross estate value (all assets including the property). Select your relationship to the deceased — surviving spouses receive the most favourable treatment under the Estate Duty Act. Enter any outstanding bond that must be settled, the expected estate administration period (typically 12–18 months), and estimated monthly running costs (rates, levies, insurance) during that period.
Switch to the Keep vs Sell tab to compare selling the property from the estate against keeping it for 10 years, factoring in appreciation, CGT, and ongoing costs.
The Inheritance Cost Formula
Several costs are triggered when property forms part of a South African deceased estate:
Key rules:
- Estate duty abatement: R3.5M per estate (R7M for second-dying spouse)
- Spousal exemption (s4(q)): Property bequested to a surviving spouse is fully deductible — zero estate duty
- Executor fees: Maximum guideline tariff is 3.5% of gross estate value + 15% VAT
- Transfer duty: EXEMPT on inheritances — you only pay conveyancing and deeds fees
- CGT base cost step-up: The base cost resets to the date-of-death value — no CGT on inherited gain
Worked Example
Thabo inherits his late father's home in Johannesburg, valued at R1,500,000. The total estate (including cash and investments) is R3,000,000. There is an outstanding bond of R200,000.
Estate duty: Dutiable estate = R3,000,000 − R3,500,000 abatement = R0. No estate duty payable.
Executor fee (pro-rata): 3.5% × R3,000,000 × 1.15 VAT × (R1,500,000 / R3,000,000) = R60,375
Bond settlement: R200,000. Transfer costs (conveyancing + deeds): approximately R31,000.
Running costs for 12 months at R5,000/month = R60,000.
Total cost to inherit: approximately R351,375. Net value received: R1,148,625.
Frequently Asked Questions
Do I pay transfer duty when I inherit a property in South Africa?
No. Transfer duty does not apply to property inherited through a deceased estate — it only applies to sales of property. When transferring an inherited property into your name, you will pay conveyancing fees and the Deeds Office registration fee, but no transfer duty is payable under Section 9(1)(e) of the Transfer Duty Act.
How is estate duty calculated on an inherited property?
Estate duty is calculated on the total dutiable estate (gross assets minus allowable deductions), not just the property. The property's share of estate duty is pro-rated based on its value relative to the total estate. For 2025/2026, the abatement is R3 500 000 per estate — estates below this threshold pay no estate duty. Property bequested to a surviving spouse is exempt under Section 4(q).
What is the CGT base cost step-up on inherited property?
When you inherit a property, the capital gains tax (CGT) base cost is reset to the date-of-death market value. This means that all appreciation that occurred during the deceased's ownership does not attract CGT for you as heir — CGT only arises on gains after the inheritance. If you sell the property immediately at the date-of-death value, there is no CGT payable. This is a significant tax benefit of inheritance over gifting.
How long does it take to receive an inherited property in South Africa?
The estate administration process in South Africa typically takes 12 to 24 months, though complex estates can take longer. The executor must report the estate to the Master of the High Court, advertise for creditors, settle all debts and taxes, and obtain a Liquidation and Distribution account before distribution. During this period, you are responsible for maintaining the property (rates, levies, insurance) but cannot sell or mortgage it without the executor's consent.
Can I negotiate executor fees on an inherited estate?
Yes. The 3.5% tariff is a guideline maximum, not a fixed fee. Heirs can negotiate with the executor, especially for large estates where the percentage would result in a disproportionately high fee. For a R5 million estate, the guideline fee would be R201,250 (including VAT). Many practitioners are willing to negotiate a lower rate. The Master of the High Court can also review and reduce excessive executor fees.