Estate duty and wills explained
When someone dies, their estate may pay estate duty to SARS, but most estates pay none because of a large deduction called the abatement.
How estate duty works
Estate duty is a tax on the value of what a person owns when they die, after debts and certain deductions. The first R 3,5 million of the net estate (the abatement) is free of duty. The rest, called the dutiable estate, is taxed at 20% up to R 30 million and 25% above that.
Important deductions
- Everything left to a surviving spouse is deducted, so it is not taxed on the first death.
- Unused abatement passes to the surviving spouse, so a couple can shelter up to R 7 million between them.
- Debts, funeral costs and the costs of winding up the estate are deducted.
- Retirement fund benefits such as pension and retirement annuity payouts are generally not part of the estate for estate duty.
An example
A single person leaves a house, savings and a car worth R 5 million after debts and costs. The dutiable estate is R 5 million − R 3,5 million = R 1,5 million, and estate duty is 20% of that, R 300 000. Capital gains tax on assets that have grown in value may also be due, and is calculated separately.
Why a will matters
Without a valid will, your estate is divided under the Intestate Succession Act, which may not match your wishes, and naming a guardian for children is only possible in a will. A will must be in writing, signed by you and by two witnesses aged 14 or older who are not beneficiaries. You can nominate an executor; their fee may be up to 3.5% of the gross value of the estate plus VAT, although many will agree to less.
Frequently asked questions
Do I pay estate duty on money my parents leave me?
No. Estate duty is paid by the estate before the inheritance is handed over. You do not pay income tax on an inheritance.
How long does winding up an estate take?
Often 6 to 12 months for a simple estate, and longer if there are disputes, property transfers or tax issues.
Where is the will kept?
Keep the original somewhere safe, such as with your bank, attorney or executor, and tell your family where it is. After death, it is lodged with the Master of the High Court.
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Open calculator →Based on the Estate Duty Act 45 of 1955 (abatement and rates as amended in 2018), the Wills Act 7 of 1953 and the Administration of Estates Act; see SARS: Estate duty. Checked 16 October 2026. This guide is general information, not legal advice; speak to an attorney or fiduciary specialist about your own estate.