What Is an Executor and How Do They Work

When someone dies, their money, property and debts don't just transfer themselves to the family. Someone has to step in, take control of everything the person owned, settle what they owed, and hand the rest to the right people - all under the supervision of the State. That someone is the executor, and the job is bigger and more involved than most people imagine.

This guide explains what an executor is, how they're appointed in South Africa, what they actually have to do, how long it takes, what they're allowed to charge, and how to choose the right one. Whether you're writing your own will or dealing with a loved one's estate, knowing how this works removes a lot of the mystery.

What an executor is

An *executor* is the person (or institution) legally responsible for administering a deceased person's estate - that is, winding up their financial affairs after death. The executor takes charge of the assets, pays the debts and taxes, and distributes what remains to the heirs and beneficiaries.

The whole process is governed by the *Administration of Estates Act 66 of 1965 and overseen by the Master of the High Court*, a State office that supervises deceased estates. An executor can't simply start dealing with the estate - they have to be formally appointed by the Master before they have any authority.

How an executor is appointed

There are two routes, depending on whether there's a will.

• *If there's a will*, it normally names the executor (this is one of the main reasons to have a will). The named person reports the estate to the Master and applies to be appointed.
• *If there's no will*, the Master appoints an executor, usually after the family nominates someone and reaches agreement. This can cause delay where a will would have made the choice clear.

Either way, the Master issues a document confirming the executor's authority:

• For estates worth *R250,000 or more, the Master issues Letters of Executorship*, and the full estate administration process must be followed.
• For estates worth *less than R250,000, the Master can issue Letters of Authority* under section 18(3) of the Act, allowing a simpler, quicker process for smaller estates.

Only once the executor holds the relevant letters can they legally act - open the estate bank account, deal with banks and other institutions, and move assets.

What an executor actually does

The role is essentially a project: take control, settle everything, distribute the remainder. In practice it involves a long list of tasks:

• *Report the death and estate to the Master* and obtain the letters of appointment.
• *Identify and take control of all the assets* - bank accounts, investments, property, vehicles, policies, possessions - and value them.
• *Open an estate late bank account* through which the estate's money flows.
• *Advertise for creditors and debtors*, giving people the deceased owed (or who owed the deceased) a chance to come forward.
• *Settle the debts* - the home loan, personal loans, accounts, and so on - and deal with the deceased's tax affairs with SARS, which usually means a tax assessment up to the date of death and another for income earned during the administration.
• *Calculate and pay any estate duty* owed (our guide on estate duty explains how this is worked out).
• *Draw up a liquidation and distribution (L&D) account* - a detailed statement of everything the estate owns, owes and how it will be distributed - and submit it to the Master.
• *Advertise the L&D account* so it can lie open for public inspection, allowing anyone to object.
• *Distribute the remaining assets* to the heirs and beneficiaries once everything is approved and all debts are paid.

It's detailed, deadline-driven work involving banks, SARS, the Master and beneficiaries - which is why many estates are handled by professionals.

How long it takes

There's no fixed timeline, but estate administration commonly takes *somewhere between several months and two years*, depending on complexity. A small, simple estate with few assets and no disputes can be relatively quick. A larger estate with property to transfer, a business, tax complications, foreign assets or family disagreements can drag on well over a year. Beneficiaries who expect an inheritance quickly are often surprised by how long the process genuinely takes.

What an executor is allowed to charge

Executors are entitled to be paid for the work, and the maximum fee is set by regulation. As currently prescribed, an executor may charge up to:

• *3.5% of the gross value of the estate's assets* (plus VAT, if the executor is a registered VAT vendor), and
• *6% on income collected* by the estate after the date of death (such as rent, interest or dividends earned during administration).

These are maximums, and the fee is *negotiable*. If you're nominating a professional executor in your will - a bank, attorney or fiduciary firm - you can negotiate a reduced percentage and have it recorded in the will. On a large estate, the difference between the full rate and a negotiated one can be substantial, so it's worth discussing up front.

Can a family member be the executor?

Yes. A spouse, adult child or other trusted person can be named as executor. But because the role is technical and time-consuming, a lay executor will often appoint a professional (an attorney or fiduciary specialist) as their *agent* to do the heavy lifting, while remaining the named executor. That agent then charges for their work. So even a "free" family executor usually ends up paying for professional help on anything but the simplest estate.

When deciding, weigh up the trade-off: a family member knows your wishes and your family, but may find the administrative load overwhelming; a professional brings expertise but charges a fee. Many people name a trusted individual alongside a professional, or appoint a professional with a negotiated fee.

How to choose the right executor

• *Pick someone trustworthy and organised* - they'll handle significant money and decisions.
• *Consider naming a backup* in case your first choice can't act when the time comes.
• *For a complex estate*, lean towards a professional or pair a family member with one.
• *Negotiate the fee in advance* if you're appointing a professional, and record it in your will.
• *Tell the person* you've named them, so it isn't a surprise, and make sure they know where your will is kept.

Key takeaways

• An *executor winds up a deceased estate - taking control of assets, paying debts and taxes, and distributing the remainder - under the supervision of the Master of the High Court*.
• They must be *formally appointed* before acting: Letters of Executorship for estates of R250,000 or more, or Letters of Authority for smaller estates.
• The job is detailed and can take *several months to two years*, involving banks, SARS and the Master.
• Executors may charge up to *3.5% of assets (plus VAT) and 6% on income collected - a maximum that's negotiable*.
• A *family member can be executor*, but often appoints a professional agent; choose someone trustworthy and settle the fee in advance.

Your next step

If you're writing a will, choose your executor deliberately - someone you trust, with a named backup, and a fee negotiated in advance if they're a professional. If you're dealing with a loved one's estate, your first move is to report it to the Master of the High Court to get the executor appointed; until that's done, no one can lawfully act on the estate. Our guides on estate duty and writing a will cover the related steps.

The content on this site is for informational purposes only and does not constitute financial advice. Always consult a qualified financial professional before making any financial decisions.

This is educational content, not financial advice. Consider your own situation, and speak to a registered adviser before making decisions.