News24 | John Wessels | The hidden costs of inheriting a home

Inheriting a home is both a privilege and a responsibility.

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September is Wills Month, and serves as an annual reminder for South Africans to put their affairs in order and ensure their wishes are clearly documented before they pass. Yet, while many people focus on drafting or updating a will, far fewer consider whether they’ve left their loved ones with the financial means to carry out those wishes, writes John Wessels.

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For many South African families, a home is their most valuable asset and one of the greatest legacies they hope to leave behind. However, inheriting a home doesn’t simply mean receiving the keys. It often entails a range of financial responsibilities that begin almost immediately after a loved one passes, long before the property can be transferred to beneficiaries or sold.

A will determines who inherits your assets, but it doesn’t provide the cash needed to administer your estate or keep your home running while the estate is being wound up. Without proper planning, families can find themselves navigating both grief and unexpected financial pressure at the same time.

The costs many never see coming

When someone dies, there are several expenses involved in administering an estate before assets can be distributed. These may include executor’s fees, Master’s Office costs, advertising fees, courier and administrative expenses, as well as SA Revenue Service and accounting costs. Where rental income forms part of the estate, additional executor’s fees may also apply.

At the same time, the costs of owning a home don’t simply disappear. Municipal rates and service charges remain payable, maintenance cannot be neglected, gardens still need to be cared for, and security or armed response services often need to remain in place to protect an unoccupied property.

If beneficiaries decide to retain the home, transfer costs also need to be considered. If they choose to sell it, municipal charges can continue for several months before ownership is transferred.

These are expenses many South Africans don’t anticipate when planning their estates, and they can place significant financial strain on loved ones during an already difficult time.

Try to make provision for the cost of maintaining a home after your death.

Supplied/BetterSure

A will needs financial backing

A common misconception is that having a valid will is enough to ensure a smooth transition for your family. In reality, a will provides instructions rather than liquidity.

Having sufficient life cover can make a significant difference by providing the funds needed to settle estate administration costs and keep the household financially stable while the estate is finalised. This can prevent loved ones from having to make difficult financial decisions, such as selling assets under pressure or struggling to cover ongoing household expenses.

Maintaining adequate home insurance remains essential throughout the estate administration process. A property remains exposed to risks such as fire, storms, theft and vandalism, regardless of whether the owner is still alive. Keeping the home insured helps preserve one of the family’s most valuable assets until ownership is transferred or the property is sold.

A will is one of the most important documents you can have, but it’s only one piece of the estate planning puzzle. Homeowners should also consider whether their estate has enough liquidity to cover administration costs and maintain the property. Proper planning can spare loved ones from unnecessary financial stress at a time when they should be focused on healing.

Protecting your legacy means planning beyond the will

Wills Month is about more than deciding who inherits your assets. It’s about ensuring your family can honour your wishes without facing avoidable financial hardship.

Reviewing your will regularly is an important first step, but it should form part of a broader financial plan that includes adequate life cover and appropriate home insurance. Together, these measures help ensure there is sufficient liquidity to manage estate costs, protect your property and preserve your legacy.

John Wessels is executive for product and analytics at BetterSure Financial Consultants.

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