Intestate Succession, Security and Wills
Did you know that if a person dies without drawing up a valid Will, the Estate is finalised according to intestate succession laws and the Master may require that a bond of security be provided before they grant the letters of executorship?
A bond of security usually has to be provided for the gross value of the Estate. It is a type of insurance and its purpose is to protect the Estate from any misappropriation of funds or negligent act from the appointed person, and to mitigate the risk of Estate creditors being unpaid.
I am currently assisting an elderly man who is the sole heir to an Estate where there was no Will put in place. The Master has formerly requested the bond of security in terms of section 23 of the Administration of Estates Act 66 of 1965 (as amended) which states:
(1) subject to the provisions of section twenty five, every person who has not been nominated by will to be an executor shall, before letters of executorship are granted, or signed and sealed, and thereafter as the Master may require, find security to the satisfaction of the Master in an amount determined by the Master for the proper performance of his functions: Provided that if such person is a parent, spouse or child of the deceased, he shall not be required to furnish security unless the Master specially directs that he shall do so.
This can be an expensive and cumbersome process, but there is no way around it now that the Estate has to be finalised without a Will, and the Master has requested security.
When we draw up Wills we usually include a clause to exempt the executor from having to pay security costs.
This short and underrated clause is a huge blessing to every potential executor and heir! Without it they may face high and often unnecessary costs in terms of time and money. A Will in general is a wise investment as it protects the interests and intentions of the testator, but this added clause also protects the potential executor and beneficiaries.
Do you and your loved ones have a valid Will in place as yet?
Disclaimer: the information contained in this article is educational and not intended as legal advice. You should contact an Attorney for advice and assistance pertaining to your Will and your specific circumstances.