MODULE 1
Deceased Estate
Administration
Deceased estate administration in South Africa is the formal legal process of winding up a person's affairs after death governed by four Acts, administered through the Master of the High Court, and typically taking 12 to 36 months. These seven statutory calculation tools encode the exact rules practitioners need at every stage of that process.
R3.5M
Basic abatement
s4A(1) Estate Duty Act
20% / 25%
Estate duty rate
R30M / >R30M dutiable
3.5%
Executor fee cap
s51(1) Admin of Estates Act
R250K
Small estate threshold
s18(3) Letters of Authority
WHAT IS ESTATE ADMINISTRATION
The winding-up process under South African law
When a person dies in South Africa, their estate must be formally administered through the Master of the High Court before any assets can be transferred to beneficiaries or creditors paid. This process is governed primarily by the Administration of Estates Act 66 of 1965, which sets out every obligation, deadline, form, and fee that applies to the executor and to the estate.
The administration process begins with reporting the death to the Master and ends with the Master's approval of the final liquidation and distribution account a document that lists every asset, every liability, and the final distribution to every beneficiary. Between those two points lies a structured sequence of statutory requirements: inventory filing, creditor notification, L&D account preparation, inspection period, estate duty payment, and transfer of assets.
Estate duty is a separate tax levied by SARS under the Estate Duty Act 45 of 1955. It is not the same as income tax on the deceased's final return, and it is not the same as capital gains tax on the deemed disposal at death (though both may also apply). Estate duty is levied on the dutiable amount of the estate the gross estate value after all allowable deductions and the R3.5 million basic abatement.
Intestate succession applies when there is no valid will, or when a will is partially invalid. The Intestate Succession Act 81 of 1987 provides a strict statutory distribution formula. Since 3 April 2024, permanent life partners with reciprocal support duties are recognised as spouses under this Act a significant change introduced by the Judicial Matters Amendment Act 15 of 2023.
Accrual claims arise in marriages out of community of property with the accrual system under the Matrimonial Property Act 88 of 1984. Before the estate can be wound up, any accrual claim by or against the surviving spouse must be calculated and settled it ranks before the estate's creditors and before the estate duty calculation.
KEY STATUTORY FIGURES
Budget 2026/27 · Last updated June 2026
R3,500,000
Basic abatement
s4A(1) EDA
R7,000,000
Combined spousal max
s4A(2)(4) EDA
20%
Estate duty rate (R30M)
1st Schedule EDA
25%
Estate duty rate (>R30M)
1st Schedule EDA
3.5%
Max executor capital fee
s51(1) AEA
6%
Max executor income fee
s51(1) AEA
R250,000
Small estate threshold
s18(3) AEA
R250,000
Spouse minimum (intestate)
s1(1) ISA
6 months
Inventory deadline
s27 AEA
12 months
Estate duty return
s10(1) EDA
21 days
L&D inspection period
s35 AEA
6%
Interest on unpaid duty
s10(1) EDA
EDA = Estate Duty Act · AEA = Administration of Estates Act · ISA = Intestate Succession Act
THE PROCESS
How South African deceased estate administration works
The Administration of Estates Act prescribes a specific sequence. Each step has a statutory basis, a deadline, and a consequence for non-compliance. The timeline below represents a standard solvent estate with a valid will.
Report to the Master
Within 14 days of death · s8 Administration of Estates Act
The death must be reported to the Master of the High Court with jurisdiction over the area where the deceased was ordinarily resident. The reporting person files a death notice (DBI 1/2), a completed will if one exists, and a preliminary inventory of assets. The Master issues Letters of Executorship once they are satisfied the nominated executor is fit and proper.
File the Inventory (J243)
Within 6 months of Letters of Executorship · s27 Administration of Estates Act
The executor files a complete inventory of all assets in the estate using form J243. This must include all movable and immovable property, financial accounts, investments, insurance policies, and any other assets. The inventory is the foundation for the estate duty calculation and the liquidation and distribution account.
Advertise for Creditors
As soon as practicable · s29 Administration of Estates Act
The executor must advertise for creditors in the Government Gazette and in a newspaper circulating in the area where the deceased resided. Creditors have 30 days from the date of advertisement to lodge claims. The executor may not distribute the estate until all creditor claims are assessed and either paid or rejected.
Calculate and Pay Estate Duty
Within 12 months of date of death · s10(1) Estate Duty Act
The executor must calculate the estate duty liability, complete the REV267 return, and submit it to SARS. Estate duty is calculated on the dutiable amount: gross estate value minus Section 4 deductions minus the R3.5 million basic abatement. Interest at 6% per annum accrues on any amount unpaid after 12 months.
Prepare the Liquidation and Distribution Account
Within 6 months of Letters of Executorship · s35 Administration of Estates Act
The L&D account lists all assets at date-of-death values, all liabilities, all costs of administration (including executor fees), estate duty, and the final distribution to each beneficiary. It must be filed with the Master and made available for public inspection for 21 days.
Inspection Period and Final Distribution
21-day inspection, then Master approval · s35 Administration of Estates Act
After the L&D account is lodged with the Master, it must lie open for inspection by interested parties for 21 days. Per Master's Circular 6 of 2025, publication on the Master's online portal is accepted. Once the inspection period closes without objection, the Master approves the account and the executor may make final distributions and transfer assets to beneficiaries.
ESTATE DUTY
How estate duty is calculated in South Africa
Estate duty is calculated on the dutiable amountnot the gross estate value. The deduction sequence under Section 4 of the Estate Duty Act is applied first, then the R3.5 million basic abatement under Section 4A, and only then are the estate duty rates applied. Failing to apply the deductions in the correct order is one of the most common errors in informal estate duty estimates.
The Section 4(q) spousal deduction is the most significant deduction in most estates. The full value of assets bequeathed to a surviving spouse (whether in a will or by intestate succession) is deducted from the estate. This effectively means a surviving spouse can receive an unlimited amount free of estate duty estate duty is deferred to the second death.
The portable abatement under Sections 4A(2)(4) allows the unused abatement from the first deceased spouse's estate to be carried forward and added to the surviving spouse's own R3.5 million abatement on their death. The combined maximum is R7 million. This is a significant estate planning tool but it requires a formal calculation in the first estate to quantify the unused portion.
WORKED EXAMPLE Estate duty calculation
Source: Estate Duty Act 45/1955 s4, s4A · Budget 2026/27 · Figures are illustrative
Estate duty rates South Africa 2026/27
| Dutiable Amount | Rate | Source | Effective since |
|---|---|---|---|
| R0 R3,500,000 | 0% (after abatement) | s4A(1) | 1 Jan 2010 |
| R1 R30,000,000 (dutiable) | 20% | First Schedule para 1(a)(i) | 1 Mar 2018 |
| Above R30,000,000 (dutiable) | 25% | First Schedule para 1(a)(ii) | 1 Mar 2018 |
Source: Estate Duty Act 45/1955, First Schedule as amended. Figures verified against SARS Budget 2026/27 Tax Pocket Guide.
INTESTATE SUCCESSION
What happens when someone dies without a will in South Africa?
When a South African dies intestate (without a valid will), or when a will only partially disposes of the estate, the Intestate Succession Act 81 of 1987 determines exactly how the estate must be distributed. The Act uses a strict formula based on surviving family members personal preferences, family dynamics, and verbal instructions have no legal weight.
The key formula: if a surviving spouse and children both survive, each surviving child receives a child's share (the net estate divided by the number of children plus the number of spouses), but the surviving spouse receives at least R250,000 whichever of the child's share or R250,000 is greater. If there are no children, the surviving spouse inherits the full estate.
An important change took effect on 3 April 2024: permanent life partners in relationships with reciprocal support duties are now recognised as surviving spouses under Section 1(1A) of the Act, inserted by the Judicial Matters Amendment Act 15 of 2023. This is a major change for cohabiting partners who previously had no intestate succession rights.
Intestate succession outcomes by family composition
| Family composition | Distribution rule | Source |
|---|---|---|
| Spouse only, no children | Surviving spouse inherits full estate | s1(1)(a) ISA |
| Children only, no spouse | Children share equally (per stirpes) | s1(1)(b) ISA |
| Spouse and children | Each gets child's share or R250,000, whichever is greater | s1(1)(c) ISA |
| No spouse, no children | Parents share equally; if no parents, siblings; if none, grandparents | s1(1)(d) ISA |
| Permanent life partner (from 3 April 2024) | Treated as surviving spouse under Act | s1(1A) inserted by JMAA 15/2023 |
| No surviving relatives | Estate forfeits to the State after 30 years (bona vacantia) | s1(1) ISA |
ISA = Intestate Succession Act 81/1987 as amended· JMAA = Judicial Matters Amendment Act 15/2023· Effective 3 April 2024
FREQUENTLY ASKED QUESTIONS
Common questions about SA estate administration
What is the estate duty abatement in South Africa in 2026?
The estate duty basic abatement is R3,500,000 per estate under Section 4A(1) of the Estate Duty Act 45/1955. This figure has been unchanged since 1 January 2010. A surviving spouse can inherit the unused portion of their deceased spouse's abatement the combined maximum is R7 million. The abatement applies after all Section 4 deductions have been made from the gross estate.
How are executor fees calculated in South Africa?
The maximum executor capital fee is 3.5% of the gross estate value under Section 51(1) of the Administration of Estates Act, excluding VAT. A separate income fee of up to 6% of post-death income collected may also apply. If the executor is a registered VAT vendor, 15% VAT is added to both fees. These are statutory maximums the executor may negotiate a lower rate, but may not charge more.
What is the small estate threshold in South Africa?
Estates with a gross value of R250,000 or less qualify for the simplified Section 18(3) process. The Master issues Letters of Authority instead of Letters of Executorship. This is significantly faster and cheaper. However, if the estate includes immovable property, a full administration process is required regardless of estate value immovable property cannot be transferred under Section 18(3).
Does the surviving spouse pay estate duty in South Africa?
Assets bequeathed to a surviving spouse are deducted in full from the dutiable estate under Section 4(q) of the Estate Duty Act. This means a surviving spouse can receive an unlimited inheritance without triggering estate duty in the first estate. Estate duty is effectively deferred to the second death. At that point, the unused abatement from the first estate is added to the surviving spouse's own R3.5 million abatement.
What are the statutory deadlines in a South African deceased estate?
The estate must be reported to the Master within 14 days of death. The inventory (J243) must be filed within 6 months of Letters of Executorship. The first liquidation and distribution account must be filed within 6 months of Letters of Executorship. The estate duty return (REV267) must be submitted to SARS within 12 months of date of death. A 21-day inspection period follows filing of the L&D account.
What is the estate duty rate in South Africa?
Estate duty is levied at 20% on dutiable amounts up to R30 million, and 25% on any dutiable amount exceeding R30 million under the Estate Duty Act First Schedule. These rates apply only to the dutiable amount the figure remaining after all Section 4 deductions and the R3.5 million basic abatement have been applied. The rates have been unchanged since 1 March 2018.
What happens to an estate if there is no will in South Africa?
The Intestate Succession Act 81/1987 applies. If a surviving spouse and children both survive, each receives the greater of a child's share or R250,000. If only children survive, they share equally. If only a spouse survives, they inherit the full estate. Since 3 April 2024, permanent life partners with reciprocal support duties are treated as surviving spouses following the Judicial Matters Amendment Act 15 of 2023.
Wandile Lokwe
FAIS Key Individual · 20 years South African financial services
Founder of CenturionAI (Pty) Ltd. The statutory figures and calculation rules encoded in these tools are maintained by Wandile Lokwe from official sources Acts of Parliament, SARS publications, and Budget documents and updated after every Budget, every MPC meeting, and every material legislative amendment.
Content last updated: June 2026 · Figures as at Budget 2026/27 Next statutory review: March 2027 (post-Budget) · Contact: wandile@centurionai.co.za
RELATED TOOLS
Tools from other modules practitioners use with estate administration
Income Tax Calculator
MEDIUMTax on the deceased's final year of assessment — income up to date of death.
Income Tax Act 58/1962
Capital Gains Tax
HIGHDeemed disposal of assets at death — property, shares, business interests.
8th Schedule ITA
Retirement Lump Sum Tax
MEDIUMTax on retirement fund death benefits paid to estate or nominated beneficiaries.
2nd Schedule ITA
RA Deductibility
MEDIUMRA contribution deductibility for the deceased's final partial tax year.
ITA s11F
Transfer Duty
LOWTransfer duty on property sold or distributed from the estate to beneficiaries.
Transfer Duty Act 40/1949
SARB Rates
LOWOfficial rate (repo + 1%) used for estate duty interest calculations under s10(1).
ITA s89quat