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Deceased Estate Administration

What is a Deceased Estate?

A deceased estate comprises all assets and liabilities left behind by a person after their death. These assets may include properties, bank accounts, investments, vehicles, and personal belongings, and must be distributed according to the deceased’s will or, if there’s no will, in accordance with South African intestate succession laws.

How to Process Your Loved One’s Will

Processing a loved one’s will begins with lodging it with the Master of the High Court. This starts the legal process of validating the will, ensuring that the deceased’s wishes are legally recognised and that an executor is appointed to manage the estate. If no will exists, the estate is processed under South Africa’s intestate laws.

The Estate Administration Process

Administering a deceased estate in South Africa is a detailed legal procedure. Here’s a breakdown of the steps:

  1. Report the Estate
    The estate must be reported to the Master of the High Court within 14 days of the death. You will need the death certificate, the original will (if applicable), and a full inventory of assets.
  2. Appointment of an Executor
    An executor, either named in the will or appointed by the court, oversees the estate’s administration. This role is critical, as the executor ensures that all legal obligations are met, and assets are distributed correctly.
  3. Advertise for Creditors
    Notices are placed in local newspapers and the Government Gazette to inform creditors of the deceased’s passing. Creditors have 30 days to submit claims against the estate.
  4. Collect and Value Assets
    The executor gathers all assets belonging to the estate. Each asset is carefully valued to determine the total worth of the estate.
  5. Settle Debts and Taxes
    The executor uses estate funds to settle debts and pay any outstanding taxes. This step ensures that no liabilities are passed on to the beneficiaries.
  6. Distribute the Estate
    Once debts are cleared and assets are valued, the executor distributes the remaining assets to the beneficiaries according to the will, or in line with intestate succession law.
  7. Final Accounts and Closure
    Final estate accounts are submitted to the Master of the High Court for approval. Once approved, the estate can be formally closed, and the administration process is complete.

Executor Duties

An executor plays a vital role in estate administration, acting as a representative for the deceased’s estate. Duties include:

♦ Asset Collection and Management: Securing all assets and ensuring their proper care throughout the administration period.
♦ Debt Settlement: Ensuring all debts, including funeral costs and outstanding loans, are settled.
♦ Filing Taxes: Submitting the deceased’s final tax returns and settling any outstanding taxes.
♦ Dispute Resolution: Mediating any disputes that arise among heirs or creditors.
Asset Distribution: Following the will’s instructions (or intestate laws) to distribute assets among beneficiaries.

If needed, Goldman Schultz Attorneys can act as your executor, ensuring that your loved one’s estate is handled with professionalism and care.

Our Solutions

At Goldman Schultz, we offer a range of services to simplify and guide you through the estate administration process:

Deceased Estate Administration

We manage all legal and administrative tasks, from reporting the estate to the Master of the High Court to finalising asset distribution.

Drafting a Will

We help you create a will that is both legally compliant and reflective of your personal wishes, ensuring the smooth transfer of assets after your passing.

When Must an Estate Be Reported in South Africa?

In South Africa, the estate must be reported to the Master of the High Court within 14 days of the person’s passing. This is a crucial first step in the estate administration process and cannot be delayed.

Why Choose Goldman Schultz

At Goldman Schultz, we offer a hands-on, partner-led service. With only two partners at the firm, we ensure that each case receives the personal attention that it deserves. Our thorough knowledge of deceased estate administration and South African estate law ensures a seamless, respectful process that honours your loved one’s legacy. With Andrea Goldman and Liezel Schultz handling every detail, you can trust that your case is in capable hands.

If you need assistance managing a loved one’s estate, speak to an expert at Goldman Schultz today. Alternatively, if you’re ready to start the process, you can easily report an estate to us online, and we’ll guide you through each step.

FAQ: Deceased Estate Administration

Who are the administrators of deceased estates?

The executor is the official administrator of a deceased estate. The executor is either appointed by the deceased in their will or, if no will exists, appointed by the Master of the High Court.

How to divide a deceased estate?

If the deceased left a valid will, assets are divided according to the will’s instructions. Without a will, South Africa’s Intestate Succession Act applies, dividing assets among surviving family members, including spouses, children, and other relatives. Other family members may inherit if no immediate family members exist.

Who can administer an estate in South Africa?

An executor, named in the will or appointed by the court, administers the estate. This individual is responsible for collecting assets, settling debts, paying taxes, and distributing the remaining estate to beneficiaries.

What happens if a deceased estate is not reported?

Failure to report an estate can result in legal complications, including penalties and delays in asset distribution. It is also a legal requirement to report the estate within 14 days of death to the Master of the High Court.

Who is the executor or administrator of an estate?

The executor, either named in the will or appointed by the Master of the High Court, is responsible for managing the deceased’s estate.

 

How does a deceased estate work?

Once the estate is reported to the Master of the High Court, the executor gathers assets, settles debts and taxes, and distributes the remaining assets to beneficiaries in accordance with the will or intestate succession laws.

Who can claim against a deceased estate?

Creditors, spouses, dependents, and legitimate beneficiaries can claim against a deceased estate. These claims must be submitted before finalisation of the estate distribution.

Can a family member be an executor?

Yes, a family member can be an executor if named in the will or appointed by the court. However, the Master of the High Court must approve the appointment.

Can a beneficiary be an executor?

Yes, a beneficiary of the estate can also serve as the executor, provided they are competent to manage the estate’s legal and financial obligations.

Do beneficiaries have to approve estate accounts?

Beneficiaries must be informed about the estate accounts. While they don’t approve the accounts, they can raise concerns if they believe something is incorrect. The Master of the High Court ultimately approves the accounts.

Do you need a lawyer to wind up an estate?

Though not mandatory, it’s highly recommended to involve an attorney in the winding-up process due to the complexity of legal requirements and tax matters.

How do I notify SARS of a deceased estate?

The executor is responsible for notifying SARS of the death and settling any outstanding tax liabilities, including the submission of the deceased’s final tax returns.

Is there an ombudsman for deceased estates in South Africa?

No specific ombudsman exists for deceased estates, but disputes can be addressed to the Master of the High Court, who oversees estate administration.

Who is responsible for winding up an estate?

The executor, appointed by the will or the court, is responsible for administering the estate, including collecting assets, paying debts, and distributing the estate.

How to check if a deceased estate has been registered?

You can check the registration of an estate by contacting the Master of the High Court with the deceased’s ID number and other relevant details.

Why you need an appraiser?

An appraiser is essential for valuing the assets of the deceased estate, especially immovable property, ensuring an accurate reflection of the estate’s worth for distribution and tax purposes.

What happens in the case of a customary union?

If the deceased was part of a customary marriage, the estate is administered according to the Recognition of Customary Marriages Act, provided the union was registered.

Why should a deceased estate be reported?

Reporting an estate is a legal requirement that triggers the process of formal estate administration, ensuring that assets are distributed lawfully and debts are settled.

What is the difference between an executor and a representative?

An executor is formally appointed by the court or named in the will, responsible for the full administration of the estate. A representative may assist the executor but doesn’t have the legal authority of an executor.

What happens after the account has been completed by the executor?

Once the estate account is finalised, it is submitted to the Master of the High Court for approval. After approval, the remaining assets are distributed to beneficiaries, and the estate is officially closed.

How long does a deceased estate take to settle in South Africa?

Estate administration can take anywhere from six months to several years, depending on the estate’s complexity, debts, and any disputes among heirs or creditors.

When is estate duty payable?

Estate duty is payable on estates valued above R3.5 million. The duty is 20% on the first R30 million and 25% for anything above that.