Administration of Deceased Estates - Denise Padayachee Attorneys

Having experienced loss myself, I understand that the administration of deceased estates can be a difficult and sometimes painful process for loves ones to deal with, therefore I would like to make this process a little easier for you by answering some of your questions (FAQ) here:

1. The reporting of an estate

The reporting of a deceased estate to the relevant Master of the High Court is the first step of the winding-up process and involves a notification to the Master of the death of a person, together with: the inclusion of the Last Will and Testament (if applicable), all the relevant documents such as certified copies of ID’s and the death certificate, an inventory of the Estate, as well as the relevant signed forms by the nominated executor or master’s representative. The purpose of the initial reporting is to advise the Master of the passing away of the person and to obtain a Letter of Executorship or Letter of Authority whereby the Estate may be finalised.

2. Administration of deceased estates under R250k in value

All deceased estates should be reported to the Master and administered as per the statutory requirements. The Administration of Estates Act 66 of 1965 governs the process in South Africa and currently provides that Estates with a value of R250k or less have a more simplified approach that does not require advertisements or liquidation accounts, and whereby a Master’s Representative is appointed as per the Testator’s nomination in a Will, or by the heirs of the deceased in terms of the Intestate Succession Act 81 of 1987. The Master’s representative or appointed attorney can then proceed with the liquidation and distribution of the Estate in terms of the Will or the Intestate Succession Act.

3. Administration of the deceased estates exceeding R250k in value

If an estate is R250k or more in value then a letter of Executorship is required, and the various stages of winding-up is regulated by statue and must be strictly adhered to in order to finalise an estate.

4. A glimpse at the winding-up process

The process is regulated by the Administration of Estates Act and, for explanation purposes we will use a scenario of a simple estate above R250k in value. The administration process would look something like the following:

Report the estate (comprehensively);
Obtain Letters of Executorship;
Notify financial institutions and have all liquid assets transferred to an Estate Late Account;
Liquidate the necessary movable property, and if relevant, the immovable property as per the Last Will and Testament or Intestate Succession laws (whichever is relevant in the instance);
Prepare the Liquidation and Distribution Accounts and Estate Duty Return as per the Will or Intestate Succession Act (whichever is relevant in the instance);
Place sections 29 and 35 advertisements of the estate in a local newspaper and Government Gazette simultaneously;
The Account is required to lie for inspection for a 21-day period at the relevant District Magistrate’s Court;
Distribution of the Estate upon the Master’s direction,
Finalise the Estate.

NB: The above process is not necessarily in that order. It also involves constant communication by way of formal letters with the Master to resolve issues, to lead the process through the statutory regulated stages of winding-up and to follow up on delays. The process may become more complicated if the Estate includes a Will Trust, if the Will is contested, if there are minor heirs, and so on.

5. Time-frames

On average it takes around 3 months to obtain Letters of Authority or Letters of Executorship. It may take between 8 months to 1.5 years to fully administrate an Estate above R250k at the moment in South Africa, and this period may be longer if the winding-up of the estate also includes the transfer or sale of immovable property, or if there are disagreements and disputes between heirs that directly affect the estate, or if the Testator did not provide direction regarding the inheritance apportioned to minor heirs of the estate, and so on.

6. Cost

Attorneys are trained to handle all of the above on your behalf. The standard, regulated fee for the winding-up of an Estate by an attorney is 3.5% of the gross value of the estate, plus the costs for advertising, Master’s fee and other small disbursements. These fees and costs do not necessarily need to be paid upfront if the Estate has sufficient liquidity for the attorney/agent to recover costs from the Estate. Discounted fees are possible in some instances.

Disclaimer: the information contained in this article is for public benefit and not intended as legal advice. You are welcome to schedule a consultation with us for advice and assistance pertaining to your specific circumstances.