Navigating the legal intricacies of a deceased estate is complex and time-consuming. Here’s an outline of the process.
Reporting the deceased estate
The death must be reported to the Master of the High Court within a specified time, usually within 14 days, in the jurisdiction where the deceased resided. The documentation must include the original will, certified copies of the death certificate, the deceased’s identity document, and, if applicable, the marriage certificate and antenuptial contract.
Obtaining Letters of Executorship
Once the estate has been reported, the executor must apply to the Master of the High Court for Letters of Executorship, which grant the executor the legal authority to administer the estate.
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Upon receipt of the Letters of Executorship, the executor must publish a notice to creditors in the Government Gazette and in local newspapers, so that persons with claims against the estate can lodge them within a specified time.
Assessing assets and liabilities
The executor is responsible for identifying, collecting, valuing, and taking control of all assets of the deceased estate. This may include bank accounts, investments, property, vehicles, and personal belongings.
If the deceased was a taxpayer, the executor notifies SARS to establish whether there is any outstanding tax liability and, if necessary, liaise with the deceased’s tax advisor to file outstanding returns.
The executor must also liaise with the deceased’s banks to close accounts and open a new bank account in the name of the estate.
Liquidation and Distribution Account
Once all assets and liabilities are identified, the executor prepares a Liquidation and Distribution Account and submits it to the Master for approval. The L&D Account must be submitted within six months and sets out how the assets will be distributed to the beneficiaries. It also includes any income and expenditure the estate may have incurred.
If the Master raises queries, the executor may have to lodge additional documents or a revised L&D Account. If there are no queries, the Master will give permission to advertise the account as lying for inspection.
Together with the L&D Account, the executor submits an estate duty return to the Master. If the value of the estate is over the estate duty threshold, the executor must also submit an estate duty return to SARS. Usually, SARS then performs an estate duty audit, which can delay the Master granting permission to advertise the L&D Account lying for inspection.
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Once the L&D Account has been approved by the Master, the executor must publish a notice to creditors in the Government Gazette and in local newspapers, that sets out the inspection period during which the account will be available for inspection at the Master’s office. If no objections are lodged during this period, the executor can apply to the Master for authorisation to distribute the estate.
Paying debts and taxes
Before distributing assets to the beneficiaries, the executor must settle any outstanding debts and taxes owed by the deceased estate.
Distributing assets to beneficiaries
Once all debts and taxes have been paid, the executor can distribute the remaining assets to the beneficiaries as outlined in the deceased’s will or according to the laws of intestate succession, if there is no will.
Then the executor closes the estate bank account and applies to the Master for a filing slip to be able to close the file. This includes an affidavit to confirm that all creditors and beneficiaries have been paid, and proof of the transfer of any immovable property.
How we can help you
Contact us if you need help with the administration of a deceased estate. We can handle the entire process, from the appointment of an executor to the distribution of assets. Our conveyancing team is well-equipped to handle any property transfers from deceased estates to beneficiaries.
We will ensure all assets are distributed in accordance with the law and the wishes of the deceased and assist in resolving any disputes that may arise.