Who is the Master of the High Court? - The Master of the High Court is a Government Department which falls under the Department of Justice and Constitutional Development. The Master is appointed for the area of each provincial division of the High Court. For example, the estate of a person who was ordinarily resident anywhere in Johannesburg therefore would fall under the jurisdiction of the Master in Johannesburg. The Master is given powers of supervision – from the appointment of executors and trustees to oversee the administration of deceased estates, trusts, curatorship’s and related matters.
The Master's office supervises the administration of deceased estates. The purpose is to ensure an orderly winding up of the financial affairs of the deceased, the protection of the financial interests of the heirs, as well as protecting the interests of creditors, heirs, legatees and all other persons having a claim in the estate.
An executor’s powers and duties are strictly imposed by the Administration of Estates Act and the Master can take steps to ensure that the executor carries out his functions properly and in accordance with the provisions of that statute.
How long does it take to administer a deceased estate? - The Administration of Estates Act 66 of 1965 prescribes a formal process which must be followed in so far as the administration of a deceased estate is concerned, the main purpose of which is to protect the rights of heirs and of creditors. Among other things, an executor must place statutory advertisements in the newspaper and lodge an account with the Master in a certain format containing specific information complying with the Administration of Deceased Estates Act.
The process itself is highly technical and because each individual’s assets, family wishes and circumstances differ, it is difficult to place an accurate time frame on the process. We commit to finalising your estate within the time frames specified on our timelines.
What does it cost to administer an Estate? - The Administration of Estates Act prescribes a tariff equal to 3.5% of the value of the gross assets of the estate being administered as Executors remuneration as well as a fee of 6% on all income collected by the executor from date of death to date of finalisation of the administration process. A VAT vendor may add VAT at 15% to this fee.
LegalEtc offers this professional service at a reduced rate of 3% of the value of the gross assets of the estate at date of death and 5% on income.
My spouse and I are married in community of property. If I die will my spouse’s bank accounts be frozen?
- Legally speaking, the surviving spouse’s banking accounts should be frozen as well. However, in practice it is be possible for your executor to make alternative arrangements with the banking institution to allow your spouse to transact on his/her accounts provided he is satisfied that there is no possibility of the community estate being insolvent.
Can my spouse operate on my banking accounts under Power of Attorney after I die?
- In terms of South African law, a power of attorney granted by a person during his/her lifetime becomes null and void when the person who granted it dies. In addition, once a person has passed away, no one is legally permitted to operate the banks accounts of the deceased or deal with any assets in that person’s estate except an executor in whose favour the Master of the High Court has issued Letters of Executorship.
What do I do if I was nominated as Executor in someone’s Will who has died?
- Whilst it is possible to report the estate yourself to the Master of the High Court, the Master will, in the event that the estate is above R250 000.00 in value, require that you appoint a professional estate administrator to attend to the administration of the estate on your behalf, before issuing Letters of Executorship.
If, however, the estate value at date of death is below R250 000.00. the Master will issue a Letter of Authority which allows you to administer the estate. We at LegalEtc. understand the complexity and time involved in administrating an estate irrespective of the value and suggest that you need to choose a professional estate administrator such as LegalEtc who will report the estate to the Master and deal with all the Master’s requirements. Once all the necessary documentation and information has been approved to the Master’s satisfaction, he will issue the Letters of Executorship/ Letter of Authority confirming your appointment as the executor of the estate.
You will then grant LegalEtc. the authority to administer the estate under a Power of Attorney.
What if my heirs live overseas?
- In terms of the exchange control regulations, an inheritance bequeathed to a beneficiary who has never been resident in South Africa can be transferred into a bank account in the name of the beneficiary in his/her country of choice. If a beneficiary has ever been resident in South Africa on a permanent basis then the inheritance can likewise be freely transferred provided the beneficiary has formalised his/her emigration with the South African Reserve Bank.
Failure to finalise emigration at the time of leaving the country can be rectified subject to compliance with certain formalities. A recognised Executor will assist with this.
