Losing a loved one is never easy, and dealing with their affairs can be overwhelming, especially when it comes to navigating the legal aspects of their estate.
In South Africa, specific laws and regulations govern the distribution of assets and settlement of debts after someone passes away. Here’s an overview, outlining the relevant legislation and the terminology involved.
The legal framework
The primary legislation governing deceased estates in South Africa is the Administration of Estates Act 66 of 1965. This act provides the legal framework for the administration and distribution of estates of deceased persons. The Wills Act 7 of 1953 regulates the validity and execution of wills, which play a crucial role in the estate administration process.
What is the administration of a deceased estate?
Deceased estate administration involves the process that an executor must follow to manage the estate of the person who has died. In South Africa, this process is governed by the Master of the High Court and usually starts with the appointment of an executor in terms of the deceased person’s will. If the deceased did not have a will, the heirs may appoint an executor.
The executor is responsible for managing the assets, liabilities, and affairs of the deceased estate, and ultimately for distributing the assets to the heirs or beneficiaries in accordance with the law or the wishes of the deceased person.
This involves the reporting of the deceased estate, collecting the property of the deceased estate, paying the debts due by the deceased estate, and distributing the remaining property to the heirs.
The executor and executorship
The executor of the deceased estate is appointed to administer the estate and to ensure that the deceased’s wishes, as outlined in their will, are carried out.
If there is no will or if the appointed executor is unable or unwilling to act, the Master of the High Court may appoint an executor. The executor is responsible for various tasks, including gathering assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries.
The Master of the High Court
The Master appoints the executor, approves the Liquidation and Distribution Account, and gives permission for the assets to be distributed in terms of the L&D Account. The process can take anywhere from a few months to a couple of years. It all depends on the complexity and possible delays caused by third parties, such as SARS, other creditors, or disputes among the beneficiaries.
In our next blog, we’ll outline the step-by-step process of administering a deceased estate.