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Ms Sword was rushed to hospital but died later while Tabitha died at the scene.
Her husband Alistair, 53, and son Benjamin, 11, were cut free from the smashed SUV and airlifted to Lenmed Ethekweni hospital.
They are in a critical but stable condition.
The 60-year-old female driver of the Mercedes died shortly after paramedics arrived.
The collision is thought to have taken place due to a driver stopping in the fast lane, causing the Mercedes motorist to swerve into oncoming traffic.
The Swords, of Lurgashall, West Sussex, all wore seat belts during their drive to their lodge near Durban, it is believed.
Ms Sword’s brother Tim Taylor, 55, is married to the Queen’s cousin Lady Helen Taylor.
Relatives are believed to have arrived in Durban yesterday.
Ms Sword formerly ran a trouser boutique from her home.
The Foreign Office said: “We’re assisting next of kin of a family in a road accident in South Africa.”
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