Advise your clients to look beyond executors’ fees this National Wills Week

National Wills Week is an opportune time for advisers to revisit a conversation many clients think is “done and dusted” once a Will is drafted. As Bertie Nel, Momentum Head of Financial Planning and Advice, cautions, a Will is only the starting point. Without proper estate liquidity planning, clients’ legacies may be eroded by costs they didn’t anticipate — and this is where the adviser’s role is critical.

Executors’ fees: the overlooked cost

While clients often focus on ensuring their wishes are documented, few appreciate the financial implications of winding up an estate. Executors’ fees, Nel explains, are a prime example. In South Africa, the maximum fee is set at 3.5% of the gross value of the estate plus 6% of post-death income. On an estate worth R2 million, that’s R70 000 before VAT — payable in cash.

Because the calculation is based on the gross estate value, families may be left scrambling for liquidity if most assets are tied up in property or business interests. Advisers should be alert to this blind spot: executor fees and related costs can force the sale of assets at distressed values, undermining the client’s intended legacy.

The liquidity trap

Clients frequently assume that life cover automatically solves this problem. Nel warns otherwise: “While life insurance is a vital financial resource for dependants, unless structured correctly, it doesn’t provide liquidity for the estate. Proceeds typically bypass the estate and go straight to beneficiaries.”

For advisers, this underlines the importance of positioning estate liquidity solutions as separate and essential — not optional extras.

Where advisers add value

Estate planning is one of the most tangible demonstrations of an adviser’s professional value. It’s an opportunity to:

• Educate clients on hidden costs like executors’ fees, estate duty, and capital gains tax.
• Structure solutions — such as estate liquidity policies or liquid investments — specifically designed to cover winding-up expenses.
• Provide reassurance that heirs will inherit what the client intended, without costly surprises.

A holistic approach

“The conversation with your financial adviser shouldn’t stop at drafting a Will,” says Nel. “It needs to extend to making specific provision for all potential costs, ensuring your legacy is preserved.”

By proactively addressing estate liquidity, advisers can shift the client discussion from simply having a Will to creating a comprehensive estate plan. This positions advisers as indispensable partners in safeguarding legacies, while also opening opportunities to recommend tailored solutions.

Moving beyond the Will

Nel concludes: “A Will is only one piece of the puzzle. The true value lies in a robust estate plan — one that protects the legacy your clients have built and transfers it intact to the next generation.”

For advisers, Wills Week is not just about awareness; it’s a reminder to lead these deeper conversations, demonstrate expertise, and reinforce the value of holistic financial planning.