The Business of Death: What We Often Overlook

 

The Business of Death: What We Often Overlook

Death is one of life’s certainties, yet many people avoid planning for it. In South Africa, conversations about death are often uncomfortable, but the lack of preparation can leave families overwhelmed—emotionally, financially, and legally. Understanding the practical side of what happens when someone passes away is not morbid—it is an act of care and responsibility for those we leave behind.

One of the most overlooked areas is estate planning. Without a valid will, your assets are distributed according to South African intestate laws, which may not align with your wishes. This can lead to delays, disputes, and even financial strain for your loved ones. Drafting a simple will with clear instructions is the first step in easing the administrative burden that comes with death. It also ensures your estate is wound up according to your intentions.

Taxes and fees are another reality. When a person dies, their estate may be subject to estate duty, currently levied at 20% for estates up to R30 million, and 25% above that. In addition, executor’s fees (usually 3.5% of the estate plus VAT), conveyancing costs on property transfers, and potential capital gains tax can reduce what beneficiaries ultimately inherit. Many families are shocked to discover how much of an estate is consumed by these costs before heirs receive anything.

Then there are the funeral expenses. In South Africa, funerals can range widely in cost—from around R15,000 for a modest service to upwards of R80,000 for more elaborate arrangements. Coffins, catering, transport, venue hire, and headstones all add up quickly. For many families, these expenses come at a time of grief, and without funeral cover or savings in place, the costs can cause real financial distress.

Beyond money, there are practical matters that few consider in advance. Bank accounts are frozen until the estate is wound up, meaning families often can’t access funds immediately. Policies and insurance need to be claimed, and creditors need to be settled before beneficiaries see any payout. Having a clear “death file” with important documents—such as IDs, policies, bank details, and the will—can save loved ones from unnecessary stress and delays.

The business of death may sound clinical, but preparing for it is one of the greatest gifts you can leave behind. By having the right paperwork in place, understanding the tax and cost implications, and making provisions for funeral expenses, you ease the path for those left behind. Death may be inevitable, but unnecessary chaos and financial strain don’t have to be.