When you make a Will, most of the focus naturally falls on who will inherit your assets. But there is another important decision to make: who will administer your estate when you are no longer here?

Many people instinctively appoint a spouse, adult child or trusted family member as executor. While this may seem like the natural choice, being trustworthy and being equipped to administer a deceased estate are two very different things.

An executor carries significant responsibility and may need to deal with the Master of the High Court, SARS, banks, investment houses, insurers, property, creditors and, ultimately, beneficiaries. For someone who has never administered an estate before, the responsibility can quickly become more demanding than expected.

What does an executor charge?

In South Africa, executor's remuneration is regulated, with the prescribed tariff generally providing for a maximum fee of:

• 3.5% of the gross value of the assets in the estate; and
• 6% of income collected and accrued after death.

VAT may also apply where the executor is a registered VAT vendor.

On an estate with gross assets of R5 million, a fee calculated at 3.5% would amount to R175,000 before VAT.

Executor fees are therefore worth considering when deciding whom to appoint, rather than leaving your family to discover the cost after your death.

At Appleton Fiduciary Services, executor's fees are calculated on a sliding scale based on the gross asset value of the estate:

• 3.5% on the first R3 million; and
• 2% on everything above R3 million.

Using the same R5 million estate as an example, Appleton's fee would be:

R3 million × 3.5% = R105,000
R2 million × 2% = R40,000

Total: R145,000 before VAT

That is R30,000 less than a fee calculated at 3.5% across the full R5 million gross asset value, before VAT.

The benefit of the sliding scale becomes increasingly meaningful as the gross value of the estate grows.

“Why don't I simply appoint my child?”

You certainly can appoint an adult child or another family member as executor.

The difficulty often arises when that person discovers just how much is involved.

A lay executor may appoint a professional agent under a power of attorney to assist with the day-to-day administration. While the agent can do much of the practical work, the executor does not simply disappear from the process.

And this is where things can become frustrating.

Today's estate administration increasingly involves ongoing FICA and identity-verification requirements. Banks, investment institutions and other service providers may insist on dealing directly with the appointed executor for certain requirements, even where an agent holds a power of attorney.

That can mean repeated requests for updated FICA documents, identity verification, telephone calls and, depending on the institution and process, digital verification such as photographs or selfies.

There is also SARS. Estates often require ongoing tax interaction and compliance, and difficulties or delays in resolving tax matters can have a knock-on effect on the administration.

For a family member who expected simply to “sign a few forms”, the role can therefore become far more involved than anticipated.

Appointing a family member does not necessarily save you money.

If a family member needs to appoint a fiduciary specialist, attorney, accountant or tax practitioner to assist with the administration, professional costs may still be incurred.

There can also be a less obvious cost: time and frustration.

Delays in obtaining documents, completing verification requirements, responding to institutions or resolving tax matters can make an already complicated process more difficult for everyone involved.

This does not mean that appointing a family member is necessarily the wrong choice. It simply means the decision should be made with a clear understanding of what the role actually involves.

Instead of considering “Who will charge the lowest executor's fee?” perhaps the better question is “Who will be able to administer my estate efficiently, professionally and with the least difficulty for my family?”

This becomes particularly important where an estate includes property, substantial investments, business interests, trusts, offshore assets, complex tax affairs or potentially competing family interests.

In these circumstances, the value of experienced professional estate administration extends well beyond completing paperwork.

Make the decision while you can

The executor you appoint today may one day be responsible for dealing with your financial affairs at a time when your family is coping with your loss.

Choosing the right executor is therefore about more than fees. It is about experience, continuity, efficiency and making an already difficult time a little easier for the people you leave behind.

Let Appleton make it easier for your family

At Appleton Fiduciary Services, professional deceased estate administration is at the heart of what we do.

Our sliding-scale executor's fee of 3.5% on the first R3 million of gross estate assets and 2% on everything above R3 million combines professional estate administration with a fee structure that becomes increasingly beneficial as the value of the estate grows.

Speak to Appleton Fiduciary Services about appointing Appleton as executor of your estate.

Because good estate planning isn't only about what you leave behind.

It's also about making things easier for the people you leave behind.