Administration of Deceased Estates
Wills & Estate Administration
Losing a loved one is a deeply emotional experience that can leave you feeling overwhelmed. On top of dealing with grief and sadness, there’s the daunting task of handling legal matters and estate administration.
At Rakesh Sam Attorneys, we understand the challenges you’re facing, and our compassionate Deceased Estate department is here to provide the support you need. Let us take the burden off your shoulders and guide you through this difficult process. Contact us today and allow us to bring you peace of mind during this trying time.
Step by step process:
1. Gathering documentation
During this crucial step, the family of the deceased must first determine the nominated Executor of the Estate. It is essential to obtain the death certificate and the Last Will and Testament, if one exists. Engage in a meeting with the executor to provide vital information such as bank account details, property title deeds, insurance policy documents, and any other pertinent financial records. Our dedicated team will guide you through this process, ensuring all necessary documentation is efficiently gathered.
2. Reporting the Estate
When it comes to reporting the estate, timing is crucial. The Estate of the deceased should ideally be reported to the Master of the High Court within 14 days of the date of death. This process is guided by the Administration of Estate Act 66 of 1965 (as amended), which outlines the necessary steps for administering the estate.
To gain the formal appointment and necessary powers to administer the estate, the nominated executor must submit specific documentation to the Master of the High Court. This includes the death notice, acceptance of trust as executor, next of kin affidavit (if applicable), and section 9 inventory. It’s important to note that this procedure can take up to 6 weeks to complete and finalize.
3. Letter of Executorship
Once the required documentation is submitted, the Master of the High Court will officially appoint the Executor, granting them the necessary powers to administer the estate of the deceased. This appointment is made through the issuance of a Letter of Executorship.
Upon receiving the Letter of Executorship from the Master’s office, one of the initial tasks for the executor is to advertise the estate. The purpose of this advertisement is to notify any creditors who are owed money by the estate, allowing them to register their claims. Typically, this process may take up to 8 weeks from the date of the person’s passing.
Advertisements are required to be published in the Government Gazette as well as a local newspaper. It’s important to note that creditors have a window of 30 days from the publication date of the advertisements to lodge any claims against the estate.
4. Preparing the Liquidation and Distribution (L&D) account:
When the 30-day notice period to all creditors of the deceased expires, the executor embarks on an important task – the preparation of the Liquidation and Distribution account (LD Account).
This meticulous account details every asset, liability, and the beneficiaries’ inheritance according to the will. It also outlines the income and expenditure from the date of the deceased’s passing. Together with supporting documents, the executor submits the LD account to the esteemed Master of the High Court.
To comply with regulations, the executor must file the LD account within 6 months from the date of death. However, if more time is needed, the executor can request an extension from the Master.
Should the Master have any queries, they are promptly shared with the executor, who must respond within a specified time frame. Once the Master grants approval, the account can be advertised. Simultaneously, the executor submits the deceased’s final tax return to the Receiver of Revenue.
5. Inspection period for the liquidation and Distribution account:
There must be an advertisement in the Government Gazette and a local newspaper advertising the L&D account and it must be available for inspection at the Master’s Office and the Magistrate’s Office in the district where the deceased lived for 21 days. Public access to this is available.
A review of the account by the beneficiaries is also available before the Master approves it. In the event of a second L&D account, the executor must follow the same process to make it public. In the absence of objections, the Master will confirm to the executor that the assets may be distributed to the beneficiaries.
6. Distribution to Heirs and payment to Creditors:
Obtain the filing slip:
Upon completion of the distribution process , it is crucial for the Executor to provide the Master’s office with proof of asset distribution and creditor payment. This ensures that everything has been properly settled and the Executor’s responsibilities are fulfilled. However, even after the estate has been distributed, unexpected assets may emerge, such as offshore properties. In such cases, the Executor must handle these assets or appoint an offshore executor if necessary.
Additionally, if the value of the assets is R5,000 or more (or an amount that affects estate duty), a supplementary LD account must be lodged. Rest assured, our team will guide you through every step of the process to ensure a smooth and comprehensive estate settlement.