Estate Planning Glossary

35 plain-English definitions of the terms you will encounter when planning an estate or administering one in South Africa.

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Administration of Estates Act: Act 66 of 1965, the principal South African statute governing how a deceased estate is reported, administered and finalised.

Beneficiary: A person or entity who receives a benefit from an estate, trust, life policy or retirement fund.
Bequest: A specific gift of money, an asset or a class of assets left to a named person or organisation in a will.

Capital Gains Tax (CGT): Tax on the gain made when an asset is disposed of, including a deemed disposal on death. Death triggers a deemed disposal of all assets at market value (with limited rollover for spouses).
Conduit principle: A trust-tax principle that allows trust income and capital gains distributed to beneficiaries in the year they arise to be taxed in the beneficiaries' hands rather than at the trust's flat rate.
Curator bonis: A person appointed by the High Court to manage the estate of someone who is unable to manage their own affairs (for example, due to mental incapacity).

Death Notice (J294): The Master of the High Court form lodged when reporting a deceased estate, recording the deceased's particulars, family and assets.
Donations Tax: Tax of 20% (25% above R30 million) on the value of donations, with an annual exemption of R100,000 per donor.

Estate duty: South African death duty levied at 20% on the dutiable amount of an estate above R3.5 million (and 25% above R30 million). The R3.5 million abatement can be transferred between spouses.
Executor: The person appointed by the Master of the High Court to administer a deceased estate. Named in the will, or appointed by the Master if there is no will.
Executor's remuneration: The fee payable to the executor under Section 4A of the Administration of Estates Act, typically 3.5% of gross asset value plus 6% of post-death income unless the will provides otherwise.

Fideicommissum: A testamentary arrangement under which an asset passes first to one beneficiary and then, on a defined event (typically death), to a further beneficiary.

Guardian's Fund: A fund administered by the Master of the High Court holding inheritances of minor children and other persons under disability, until they can lawfully receive the funds.

Heir: A person who inherits the residue of an estate, as distinct from a legatee who inherits a specific bequest.

Inter vivos trust: A trust created during the founder's lifetime, by a deed of trust signed and registered with the Master of the High Court.
Intestate: Dying without a valid will. The Intestate Succession Act 81 of 1987 determines who inherits in this case.
Inventory (J243): A schedule of all assets in a deceased estate, lodged with the Master when the estate is reported.

Legatee: A person who receives a specific legacy or bequest under a will, as distinct from an heir who inherits the residue.
Letters of Authority (J170): Authority issued by the Master under Section 18(3) for estates with a gross value of R250,000 or less, allowing a representative to administer the estate without the full process.
Letters of Executorship (J238): The formal authority issued by the Master of the High Court appointing the executor to administer an estate above R250,000.
Liquidation and Distribution Account: The financial account of a deceased estate, listing all assets, liabilities, administration costs and the distribution to heirs and legatees. Lodged with the Master and advertised under Section 35.
Living will: A declaration of wishes about medical treatment if you are unable to communicate. It is not a substitute for a will and is not enforceable in all circumstances under South African law.

Massing: An arrangement in a joint will where spouses combine their estates into a single mass on the first death, with the survivor inheriting subject to specified conditions.
Master of the High Court: The state office responsible for supervising the administration of deceased estates, trusts and the property of minors and persons under disability.

Per stirpes: Distribution by branch: if a beneficiary has predeceased, their share is divided among their own descendants.

Residue: What remains of an estate after all debts, taxes, costs and specific bequests have been paid. The residue is distributed to the residuary heirs.

Section 18(3) estate: An estate with a gross value of R250,000 or less, administered under section 18(3) Letters of Authority issued by the Master.
Section 29 notice: Newspaper and Government Gazette notice inviting creditors of a deceased estate to lodge claims within 30 days.
Section 35 notice: Newspaper and Government Gazette notice giving the public 21 days to inspect the Liquidation and Distribution Account at the Magistrate's Court and Master's Office.
Section 37C: The provision of the Pension Funds Act under which retirement-fund death benefits are distributed to dependants by the trustees, outside the deceased estate.
Section 4A: The section of the Administration of Estates Act setting the statutory tariff for executor's remuneration.

Testamentary trust: A trust created in a will, taking effect on the death of the testator. Commonly used to hold a minor child's inheritance until they reach a chosen age.
Testator: A person who makes a will. The female form, testatrix, is also used.

Usufruct: A right to use and enjoy an asset (or its income) belonging to another, for a defined period, often for the life of the usufructuary.

Wills Act: Act 7 of 1953, which sets the formal requirements for a valid will in South Africa, including signature in the presence of two competent witnesses.

Read our in-depth articles on Section 4A executor's fees, the Master's Office process and intestate succession.