Most people draft a will once and file it away. It sits in a drawer or a safety deposit box, largely forgotten, while life continues to change around it. Assets grow. Families change. The law moves. And the gap between what a will says and what the law will actually do with an estate widens.

2025 and 2026 have brought several developments that affect South African estate planning in practical, measurable ways. Some are legislative. Some are judicial. Some reflect economic realities, for example, the R3.5 million estate duty abatement has not been adjusted for inflation for over six years, meaning more estates are now subject to duty than ever before. Others relate to new technology, and the assumptions people make about digital tools and online platforms.

Neumann van Rooyen works with clients across a wide range of estate planning and will drafting matters. The firm's view is consistent: estate planning is a living process, not a once-off event. The developments below illustrate why.

What is a Deceased Estate in South Africa?

A deceased estate comes into existence the moment a person dies while holding property or leaving a document that is or purports to be a will. The estate includes all assets and liabilities of the deceased, and is administered under the Administration of Estates Act 66 of 1965, which governs the appointment of an executor, the preparation of a liquidation and distribution account, and the ultimate transfer of assets to beneficiaries. A valid will governs how that estate is distributed. Where no valid will exists, distribution follows the Intestate Succession Act 81 of 1987, regardless of what the deceased may have intended.

A valid will governs how that estate is distributed. Where no valid will exists, distribution follows the Intestate Succession Act 81 of 1987, regardless of what the deceased may have intended.

Eight Developments South Africans Need to Know in 2026

1. Electronic Wills Are Still Not Valid in South Africa
   

   
   

   South Africans who manage their finances, sign contracts, and transact entirely online often assume that a will drafted and saved on a device carries the same legal weight as any other digital document. Under current South African law, it does not.

   The Wills Act 7 of 1953 requires a physical document with wet ink signatures. Specifically, the testator must sign at the end and on every page, in the presence of two competent witnesses who are simultaneously present. A purely electronic will, saved on a laptop, signed digitally, or stored in the cloud, does not meet these requirements.

   Section 2(3) of the Wills Act enables a court to direct the Master of the High Court to accept a will that does not meet the formal requirements of the Act. This was tested in Perumal v Janse van Rensburg NO and Others [2025] ZAGPPHC 145, where the court accepted an unsigned amended will after the deceased had drafted changes on his laptop and sent the revised document to the executor, relying on a voice message as evidence of his intention to sign. Relying on Section 2(3) requires a High Court application, legal fees, and provides no certainty where beneficiaries disagree.

2. The Estate Duty Threshold Has Not Kept Pace with Inflation

   
   

   Estate duty is levied under the Estate Duty Act 45 of 1955 on the dutiable value of a deceased estate. The primary abatement is R3.5 million per person and has been at this level since 2019, without adjustment for inflation. It was not changed in the 2026 Budget.

   Estate duty rates remain unchanged for 2026: 20% on the dutiable estate up to R30 million, and 25% on amounts above R30 million. A person who owns paid-off property together with retirement savings and life insurance may now hold an estate that exceeds the threshold without considering themselves wealthy.

   The spousal rollover provision can effectively create a combined R7 million abatement for married couples, but only if the executor of the first estate applies for it correctly in the liquidation and distribution account. This rollover is not automatic.

3. Capital Gains Tax on Death Was Adjusted in the 2026 Budget

   
   

   Under the Income Tax Act 58 of 1962, death is treated as a disposal of all assets for Capital Gains Tax (CGT) purposes. The 2026 Budget increased the CGT annual exclusion in the year of death to R440,000. While this provides modest additional relief, estates with significant unrealised gains in property or shares may still face a substantial CGT liability that interacts with estate duty to reduce what passes to beneficiaries. Clients should verify the R440,000 figure against the published SARS 2026 tax tables, as Budget provisions can be amended between announcement and implementation.

4. Retirement Savings Do Not Form Part of Your Estate

   
   

   Since the two-pot retirement system took effect on 1 September 2024, many South Africans have revisited their retirement arrangements. One estate planning implication has not received sufficient attention. Retirement funds, retirement annuities, preservation funds, and provident funds do not form part of a deceased estate, regardless of whether the old or two-pot system applies. A will cannot dictate who receives these funds. The Pension Funds Act gives trustees of the relevant fund the power to distribute benefits directly to dependants, overriding the instructions in a will.

   Two separate planning processes are therefore required: one for assets governed by a will, and one for retirement savings that fall entirely outside the estate.

5. The Outdated Will Problem Is More Common Than Clients Realise

   
   

   A will that was valid and accurate when signed can become a liability if not updated. Life events that should trigger a will review include:

   • Remarriage — Section 2B of the Wills Act 7 of 1953 governs wills made before marriage, and there is a common misconception that remarriage automatically revokes a prior will. This is not always the case.
   • Death of a named beneficiary or executor — if the will contains no substitution provisions, a bequest may fail or fall into intestacy.
   • Acquisition of significant new assets — particularly property, business interests, or offshore investments not addressed in the existing will.
   • Birth of children or grandchildren — especially where no testamentary trust for minors has been established.
   • Significant asset value growth — which may now bring the estate within the estate duty threshold.
     
     

   A will that has not been reviewed in five or more years should be treated as a document requiring attention.

6. Minor Children and the Guardian's Fund

   
   

   Where a will leaves assets to a minor, those assets cannot be held directly by the child. If no testamentary trust has been established in the will, the assets must be paid into the Guardian's Fund, administered by the Master of the High Court under the Administration of Estates Act 66 of 1965. The funds are held until the child reaches 18, at which point the full amount becomes payable, with no discretion to extend management beyond majority.

   A testamentary trust can be structured to retain assets until a specified age, provide for education and maintenance in the interim, and allow a trustee to exercise judgment in the child's best interests. Parents with minor children who have no testamentary trust provision in their will should treat this as an omission that requires attention.

7. Offshore Assets Require Specific Planning

   
   

   South Africans who hold offshore investments, foreign property, or foreign bank accounts face an estate planning gap that a South African will does not automatically close. South African law applies the lex situs principle to immovable property: the law of the country where the asset is situated governs who inherits it and how. A South African will is unlikely to be automatically valid in another jurisdiction without a formal re-sealing or probate process, which is time-consuming and costly. The combined effect of estate duty, foreign inheritance tax, and CGT on offshore assets can be significant. Clients with offshore exposure should obtain advice on whether a separate foreign will or trust structure is appropriate.

8. The Simultaneous Death Problem

   
   

   Most wills assume the testator dies before the nominated heir. Where spouses or co-heirs die simultaneously, in a motor vehicle accident, for example, the order of death determines how each estate is distributed. Without a survivorship clause or substitution provisions, the distribution of both estates may be determined by intestate succession rather than the expressed wishes of the deceased. A commorientes clause and clearly drafted alternative beneficiary provisions address this risk directly.

Practical Implications: What You Should Do in 2026

• Review your will if it has not been updated in five or more years, or if your circumstances have changed materially.
• Check whether your estate now attracts estate duty, given current property values and asset growth.
• Confirm that your retirement fund beneficiary nominations are current, bearing in mind that fund trustees retain discretion.
• Consider whether a testamentary trust is appropriate if you have minor children.
• If you hold offshore assets, obtain advice on whether your South African will provides adequate coverage.
• Ensure your will includes substitution provisions and consider including a survivorship clause.

Neumann van Rooyen advises clients on the full range of deceased estate and estate planning matters. If you have not reviewed your estate plan recently, the firm is available to assist.

Conclusion

The assumption that a signed will is a permanent solution to estate planning is one of the more costly misunderstandings in personal finance. The eight developments covered in this article are current realities affecting South African estates right now. Addressing them requires nothing more than a structured review with a qualified attorney and the peace of mind that comes from knowing your estate plan actually reflects your intentions.

Speak to our team about your estate.

FAQ Section

Q1: Is a will signed electronically valid in South Africa?

No. Under the Wills Act 7 of 1953, a valid will must be a physical document signed in wet ink by the testator at the end and on every page, witnessed by two competent persons simultaneously present.

Q2: What is the estate duty threshold in South Africa in 2026?

The primary abatement is R3.5 million per person, unchanged since 2019. Estate duty is levied at 20% on the dutiable estate up to R30 million, and 25% above R30 million. A spousal rollover can increase the combined abatement to R7 million for married couples if applied for correctly.

Q3: Do retirement savings form part of a deceased estate?

No. Retirement funds, retirement annuities, preservation funds, and provident funds fall outside the estate under the Pension Funds Act 24 of 1956. A will cannot govern their distribution.

Q4: What happens to a minor child's inheritance if there is no testamentary trust?

The inheritance must be paid into the Guardian's Fund and held until the child turns 18. A testamentary trust provides greater flexibility and allows ongoing management in the child's best interests.

Q5: How long does it take to wind up a deceased estate?

A straightforward estate with a valid will generally takes nine to fifteen months under the Administration of Estates Act 66 of 1965. Complex or disputed estates can take considerably longer.

Disclaimer: This article is the personal opinion/view of the author(s) and does not necessarily present the views of the firm. The content is provided for information only and should not be seen as an exact or complete exposition of the law. Accordingly, no reliance should be placed on the content for any reason whatsoever, and no action should be taken on the basis thereof unless its application and accuracy have been confirmed by a legal advisor. The firm and author(s) cannot be held liable for any prejudice or damage resulting from action taken based on this content without further written confirmation by the author(s).