This article was updated on 23 September, 2021
Having a will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will, or they are intimidated by the cost or process.
We consider the costs of drafting a will:
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What are the fees involved when it comes to drafting a will?
The cost of drafting a will depends on the service provider you choose, and tends not to be considerable.
“Professional will drafters, like fiduciary practitioners and some attorneys, will usually charge between R500 and R1,500 for a will,” says Eben Nel, chairperson of the Fiduciary Institute of Southern Africa. This fee, Nel says, usually includes a consultation and some estate planning advice.
According to David Thomson, senior legal adviser at Sanlam Trust, the complexity of the will plays a huge role in its costs. This is because it adds to the time spent by the practitioner drafting the document.
“If it’s a complicated estate, the fiduciary practitioner may charge an extra fee for an analysis of the estate,” adds Nel.
Quality checks to ensure the will is well-worded and drafted in accordance with the testator’s wishes also contribute to the amount you pay.
"Added to that is the nominal annual fee applicable to ensure the safekeeping of the original signed document in a fireproof vault, called a safe custody fee,” says Thomson.
An extra cost could be incurred for travelling if you stay far away from the office.
What additional costs should you consider?
By far the largest cost in preparing for and settling an estate is the execution process, which can take up to 30% of the value of your estate.
The following is a breakdown of estate execution fees.
Executor fees: These are prescribed fees paid to the executor to administer your estate.
Conveyance attorney fees: These are the fees paid to transferring attorneys, if there is fixed property owned by the estate.
Trustee fees: If your will creates a testamentary trust, the applicable fee to administer the trust will be paid to the trustee.
Property valuation fees: This is the fee paid for the valuation of any property in your estate which may be subjected to sworn appraisement, or fair market value assessment.
Can you draft a will for free?
Companies like Sanlam Trust draft wills for free if the company is nominated in the will as the executor or co-executor of the estate.
Will drafters must be reimbursed for their time and knowledge, like any other professional person, says Nel. “Don’t place too much focus on the cost of a will, but find a professional person to assist you and give you proper estate planning advice,’’ he advises.
Anyone can offer to draft a free will, but you must be careful. There is some truth in the adage that you get what you pay for, cautions Nel. The drafting of a will is not as simple as some may think. Nel advises that you find a professional to assist, even in cases of a fairly small estate.
A proper consultation with you beforehand is the only way to ensure that the drafter of the document has enough information to do a thorough job. A will is a legal document and must comply with certain requirements in order to be valid.
ALSO READ: Why is it important to update your will?
Tips on drawing up a will:
- Keep your will as straightforward as possible.
- It’s not advisable to draft your own will, unless you’re an expert.
- Make sure your will is practical. It’s advisable not to view your will as a document that will become operative only once you’ve reached an advanced age. You may not be that fortunate.
- Test the contents of your will against the cash available in your estate.
- Be practical in the division of your assets. It may, for instance, not be advisable to divide your assets equally among your spouse and children unless your whole estate consists of cash.
- If you have minor children, make sure you nominate a guardian.
- There’s no need to include funeral arrangements in the will because it will only be read after the funeral.
- Avoid inflexible directives.
A will is one of the most important documents in anyone’s life, and it may have a major impact on your loved ones. Regard a valid will as part of your legacy.
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