How to avoid estate disputes

Dealing with the aftermath of a loved one’s passing is never easy, and disputes over the distribution of their estate can further complicate an already challenging situation.

Estate disputes and litigation are not uncommon, but understanding the common issues that may arise and knowing how to resolve conflicts can help you navigate these challenges with greater ease.

Common estate disputes

Validity of the will

One of the most common sources of estate disputes is the validity of the deceased’s will. Family members may challenge the authenticity of the will, alleging that it was made under duress, coercion or undue influence.

Inheritance claims

Disputes may arise over who is entitled to inherit from the deceased’s estate, especially if there are multiple heirs or beneficiaries with competing claims. This can be particularly contentious in blended families or cases where there are estranged relatives.

Executorship disputes

Conflict may arise over the appointment or actions of the executor responsible for administering the estate. Beneficiaries may question the executor’s decisions or accuse them of misconduct or mismanagement.

Asset distribution

Disputes can also arise over the distribution of specific assets or properties, particularly if there are disagreements about how they should be divided among the beneficiaries.

Disputes among heirs

Family members may also disagree over various aspects of the estate administration process, such as the valuation of assets, the payment of debts and taxes, or the allocation of expenses.

How to resolve estate-related conflicts

Mediation

Mediation is a voluntary and confidential process in which a neutral third party helps disputing parties reach a mutually acceptable resolution. Mediation is usually a less adversarial and a less costly alternative to litigation and can help preserve family relationships.

Negotiation

Family members can attempt to resolve disputes through direct negotiation, either independently or with the assistance of legal counsel. Negotiation allows parties to discuss their concerns and interests openly and work together to find a compromise.

Arbitration

Arbitration involves submitting a dispute to a neutral arbitrator who hears both sides of the case and renders a binding decision. Arbitration can be faster and more flexible than traditional litigation, but parties must agree to abide by the arbitrator’s decision.

Litigation

In cases where disputes cannot be resolved through alternative means, parties may resort to litigation, which involves bringing the matter before a court for resolution. Litigation can be costly and time-consuming, but it may be necessary to protect one’s rights and interests.

Seeking legal advice

Estate disputes and litigation can be emotionally taxing and financially burdensome for all parties involved. Regardless of the chosen dispute resolution method, it’s essential for parties involved in estate disputes to seek legal advice from experienced estate litigation attorneys.

Contact us if you find yourself in a dispute over a deceased estate. We can provide guidance on the best way forward to help you resolve the dispute.

What is an executor of a deceased estate?

An executor is an individual appointed by the deceased in their will or by the Master of the High Court to administer their estate after they pass away. Executors play a crucial role in ensuring that the deceased’s wishes are carried out and that the estate is settled efficiently and in accordance with the law.

By understanding the responsibilities and duties associated with executorship, individuals can approach this role with confidence, knowing that they are fulfilling their obligations to the deceased and their beneficiaries.

The role of an executor

Gathering assets

One of the primary responsibilities of an executor is to identify and gather all assets belonging to the deceased estate. This may include bank accounts, investments, real estate, vehicles, personal belongings, and any other property owned by the deceased.

Paying debts and expenses

Executors are tasked with settling any outstanding debts and expenses owed by the deceased estate. This can include funeral costs, outstanding bills, taxes, and other liabilities.

Managing the estate

Executors are responsible for managing the deceased estate during the administration process. This may involve maintaining property, handling investments, and taking care of any ongoing financial matters until the estate is fully administered.

Distributing assets

Once all debts and expenses have been settled, the executor is responsible for distributing the remaining assets to the beneficiaries as outlined in the deceased’s will or, if there is no will, according to the laws of intestate succession.

Legal responsibilities and duties of an executor

Acting in good faith

Executors are legally obligated to act in the best interests of the deceased estate and its beneficiaries. This includes acting honestly, diligently, and without any conflicts of interest.

Following the will

If the deceased left a valid will, the executor must follow its instructions to the best of their ability. This may involve interpreting the terms of the will, carrying out specific bequests, and ensuring that assets are distributed according to the deceased’s wishes.

Complying with the law

Executors must comply with all relevant laws and regulations governing the administration of estates. This includes obtaining the necessary legal documents, filing tax returns, and adhering to deadlines set by the Master of the High Court.

Keeping accurate records

Executors are required to keep detailed records of all transactions and communications related to the administration of the estate. This includes documenting asset valuations, expenses paid, and any correspondence with beneficiaries or creditors.

Accounting to beneficiaries

Executors have a duty to provide regular updates and accountings to the beneficiaries of the estate, keeping them informed of the progress of the administration process and any significant developments.

How we can help you

Contact us if you have been appointed as the executor of someone’s estate and need help.

We can assist you throughout the process and will ensure all assets are distributed in accordance with the law and the wishes of the deceased.

Administration of deceased estates: An overview

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.