ESTATE ADMINISTRATION
ADMINISTRATION OF ESTATES
To administer an estate means to collect or take control of all the assets of the deceased, to pay the debts which the deceased left at date of death, and then to pay the balance left for distribution to the rightful heirs of the deceased as determined in the will, or if you do not have a will, to the heirs as determined in terms of the rules of intestate succession.
An executor should be nominated, who should administer the estate upon passing.
A person’s estate consists of all their assets and liabilities which they had as at deceased date.
PROCESS
- Reporting of the deceased estate to the Master of the High Court in the province where the deceased lived twelve months prior to death.
- After reporting of the estate an executor will be appointed by the Master of the High Court.
(No one may administer a deceased estate without being formally appointed as an executor/representative. Therefore, a deceased estate must be reported for an executor/representative to be appointed, who will be under the control of the Master.)
- Collecting the property/assets of the deceased estate.
- Paying the debts due by the deceased estate; and
- Collecting debts due to the deceased estate.
- Distributing the remaining property to the heirs, as specified in the Will or in terms the Intestate Succession Act.
- The Master will oversee the administration of the deceased estate to ensure that the correct procedures are followed.
- The Master will also ensure that the executor/representative act in the best interest of the deceased estate and may remove an executor/or representative if they fail to do so.
DEFINITIONS WHEN DEALING WITH THE ADMINISTRATION OF A DECEASED ESTATE
- Executor – any person who is authorised to act underletters of executorship granted or signed and sealed by a Master, or under an endorsement made under Section 15 of the Administration of Estates Act 66 of 1965.
- Letters of Executorship – includes any document issued or a copy of any such document duly certified by any competent public authority in any State by which any person named or designated therein is authorized to act as the personal representative of any deceased person or as executor of the estate of any deceased person.
- Master – in relation to any matter, property or estate, means the Master, Deputy Master or Assistant Master of the Supreme Court appointed under Section 2 of the Administration of Estates Act 66 of 1965, who has jurisdiction in respect of that matter, property or estate.
A will / testament is a legal document that a person drafts during his lifetime, in order to plan the distribution of their assets and properties in a way that they want after their passing.
Requirements for a valid will
- All persons 16 years and older are competent to make a will to determine how their estate should devolve upon their death.
- A will must be in writing.
- The signature of the testator/testatrix must appear on every page of the will as well as at the end of the will.
- This signature must be made in the presence of two or more competent witnesses
- You must include all details of the assets you want to bequeath as well as the names and details of your heirs.
Executor
It is important to nominate an executor, who is someone you trust will take care of your estate and your heirs’ interests after death. The administration process of a deceased estate is a complex process following the legal requirements and processes of the Master of the High Courts.
You should ensure that you nominate someone who will be able to do what is required.
PLEASE NOTE:
- You do not have to appoint an institution/person drafting your will, as your executor.
- You can appoint more than one person to simultaneously act as executors.
- Normal prescribed executor’s fee is 3,5% of the value of the assets. You are however, entitled to indicate a different fee in your will, but ensure that your nominated executor agrees with this, if the fee is lower than the prescribed fee.
What will happen if I do not leave a will?
If you die without leaving a will or a valid will, your estate will devolve according to the Intestate Succession Act, Act, 1987. This could mean that your assets will be inherited by persons you did not intend to inherit.
A will is a specialized document, which should preferably be drawn up by an expert.