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FAQ’S: Deceased estates

By adriaan visser In Latest news

 

What is a deceased estate?

A deceased estate is formed when a person dies and leaves behind assets in South Africa

When do I need to report a deceased estate?

The following estates must be reported to the Masters Office with competent jurisdiction within 14 days of the death of the deceased:

• Estates with wills
• Insolvent estates
• Estates with a gross value higher than R50 000
• Estates where beneficiaries are minors and the gross value of the estate is more than R20 000

I am the executor but I have no idea what to do. What can I do?

You may appoint a professional to act as your agent. Such a person will be able to assist you throughout the entire process from reporting the estate up to the finalisation thereof.

The deceased died without a will. What must we do now?

The estate will be wound up in terms of the Intestate Succession Act. This act provides for the distribution of the deceased’s estate to his heirs where there is no valid will available. The heirs must nominate an executor to attend to the administration of the estate. Such an appointed executor will usually be a family member or another heir of the deceased.

The will of the deceased appoints an Executor but we do not want him to attend to the administration of the estate.

Freedom of testation is very important. The only way to appoint another executor is to have the current executor relinquish his rights as executor in writing. Thereafter the heirs may nominate another executor to administer the estate.

I have inherited a house form the deceased. How do I get it transferred to my name?

 The estate of the deceased must first be reported to the Master of the High court with jurisdiction. Only after the administration process has been satisfactorily completed the Master will allow for the assets in the estate to be distributed. The transfer of the property must be attended to by a conveyancer that certifies that the transfer is in terms of the Liquidation and Distribution Account that has been laid open for inspection and that no objections has been received.

What is a Section 18(3) estate?

A Section 18(3) estate in terms of the Estate Administration Act is an estate with assets of a gross value less than R250 000. The administration of this estate is much simpler as publications and the lodgment of a Liquidation and Distribution account is not necessary.

How long does it take to wind up an estate?

The process should usually only take about six months, however in complicated situations the finalization could take longer.

Can I draft my own will?

The answer to this question is yes. Anyone is with legal capacity may draft a will. However anyone will tell you that it is not recommended. Purchasing a will template at a stationary store may seem simple enough but a standardised will may not take your personal situations into account. Furthermore if a formal requirement is omitted your heirs will have to go to court to have your will declared valid.

Who should I appoint as executor of my estate?

As the testator you may appoint anyone you choose as the executor of your estate. However large institutions and trust companies will charge a higher fee to draft your will if you decide not to appoint them as executor. Most people then go ahead to appoint the company to avoid paying the higher fee.

We recommend, if the circumstances permit, that the Testator appoint a family member or surviving spouse as executor in their will. The reason for this is that this will ensure flexibility and allow the heirs to appoint a capable professional person to assist them with the administration of the estate. This provides the heirs with the power to end the mandate of such a person if they are not satisfied with the service of that person.