ESTATE ADMINISTRATION

The Reporting of the Estate and all processes that needs to be followed

  • In South Africa, the law requires us to report an estate of the deceased when someone dies in the family.
  • Therefore it is very important to know the process in advance to be ready when that eventuality occurs.
  • This is regulated by the two pieces of legislation being:
  1. Administration of Estates Act 66 of 1965
  2. Intestate Succession Act 81 of 1987
  • Administration of Estate Act applies to all estates whereas the Intestate Succession Act only apply to estate whereby there is NO WILL.
  • This depends on how the person died. Whether the person left a valid will or had no will at the time of death.
  • Also it depends on the value of the estate that the person accumulated during his/her lifetime.
  • Therefore the process can either be reported as follows depending on the above:
  1. To the Master of the High Court where the deceased resided if that estate is more than R250 000.00 and/or the deceased have left a will; or
  2. To the Estate’s office in the Magistrate’s Court if the estate is less than R250 000.00.
  • Any assets that one accumulated during his/her lifetime. If married icop, only half share of the joint estate.
  • This includes both movable and immovable assets, cash, financial securities and personal possessions.
  • What can be excluded from the estate:

    Policy payouts where a beneficiary has been nominated.
  • Anyone who have interest and/or locus standi in the estate and must accompanied by the two witnesses.
  • It is important that if you have a will, you also appoint who needs to be appointed as an Executor and Administrator of your estate. In this instance, that person appointed in your will can be appointed by the Master to be your Executor and Administrator. Here it is also advisable to appoint an objective person from the family or a person with prerequisite skill like an Attorney or Accountant.

What happens after reporting the estate

ENQUIRE
  • The Estate Officer will issue a Letter of Authority in the case of estate less than R250 000.00 or the Master issue a Letter of Executorship in the estate more than R250 000.00.
  • Thereafter the estate needs to be advertised for creditors to come forth with their claims against the estate if any. In this instance we are looking at banks, personal loans etc.
  • Then the advert must take 30 days and if there are no creditors, then the Executor must draft what we call Liquidation and Distribution account.
  • This entails both assets and liabilities of the Deceased.
  • In some instances the beneficiaries can enter into a redistribution agreement where some inheritances has to be equalised.
  • Thereafter the estate can be distributed accordingly amongst the beneficiaries after the debts and liabilities have been paid.