New Master fees - increases effective 1 January 2018

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New Master fees - increases effective 1 January 2018

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1 January 2018 was a significant day – not only was it the start of a new year, but also with effect from that day, the Masters’ fees due in respect of deceased estates was increased.

The old tariff

Prior to the amendment, the fees as determined on the gross value of estate was as follows:

(a) where the value was R15 000 or more but less than R17 000: R42

(b) where the value was R17 000 or more for each complete further R2000 with which the gross value exceeds R17 000 : R6 subject to a maximum fee of R600

In many estates the maximum fee of R600 was payable.

The amended tariff

Under the amended Regulations the fees are increased. The Master’s payable where the gross value of the estate

(a) is R250 000 or more but less than R400 000: R600

(b) is R400 000 or more for each complete further R100 000 with which the gross value exceeds R400 000, a further R200 subject to a maximum fee of R7 000.

The maximum fee now payable is R7 000 and is applicable to estates above the value of R3.6 million.

The following formula can be used to calculate the Master’s fees:

[(gross value of estate R400 000) / R100 000 * R200] + R600 = Master's fee

Always remember to first  round the gross value down before applying the formula, as it is only for each complete R100 000, that an additional R200 becomes payable.

A hefty increase perhaps, but taken into account that Master’s fees were last updated in 1986, it was probably long overdue.

 

Article by Karin Muller, Milpark Education.

28 Sep 2018