Estates

WE UNDERSTAND AND WE CARE
Losing a family member is probably the most difficult situation we will ever face. It is a difficult time for families and it is often a lengthy, emotional and complex process. Amid the emotional turmoil of suffering the loss of a family member, spouse or close friend there are a number of practical tasks that have to be carried out. However, the majority of us have no idea what these tasks entail. That’s why we have created a guide to help you through the process and answer all your questions.

OUR COMMITMENT TO YOU AND YOUR FAMILY
Our estate administration process is supported by the expertise which recognises the uniqueness of your circumstances as to your estate and we are committed to effective administration as well as playing an integral role in ensuring that the process is handled professionally and efficiently.

EXECUTOR’S FEES
The executor is entitled to a fee of 3.5% on the gross value of assets and 6% on income accrued and collected after death as set out in terms of Government tariffs.
Because WE CARE, our fees are structured to suit your needs.
Our fees have been reduced to:
3% on the gross value of assets in an estate and
5% on income accrued and collected after death.

WHO OR WHAT IS AN EXECUTOR
At the death of a person, his/her deceased estate must be administered, in other words, distributed and controlled by a person called an executor. An executor is a legal term referring to a person named by you to carry out the instructions of your Last Will and Testament. An executor is, therefore, entrusted with the responsibility of making sure that a deceased’s last wishes are adhered to with regard to the distribution of his/her property and possessions.

NO WILL – INTESTATE SUCCESSION ACT
Intestacy is the condition of the estate of a person who dies without having made a valid Will or any other binding declaration. Generally, a court-appointed executor, who may or may not have known you, will make the distributions. The estate is then administered in terms of the Intestate Succession Act 81 of 1987.

NOMINATING A PROFESSIONAL EXECUTOR
• A professional executor will have the necessary expertise to deal with your estate. There can be many complex matters during the administration of an estate such as sorting out the deceased’s tax affairs, selling a property and dealing with investments.
• By appointing a professional executor, your beneficiaries can be reassured that all matters will be dealt with correctly.
• A professional executor has knowledge of the laws of the country and will administer your estate according to the rules and regulations set out therein.
• A professional executor can relieve family and friends of the burden of administering your estate.
• Unfortunately, tensions amongst family members and friends are common. This can cause difficulties in the administration of an estate especially if, for example, siblings do not get along and one of the siblings is appointed as the executor.
• A professional executor can ensure that all matters are dealt with impartially and in the best interests of the estate. Further, if any of the beneficiaries have any queries, as stated above, the executors will have the necessary expertise to answer those queries.
• Therefore, appointing a professional allows you to retain control.

THE ROLE OF THE EXECUTOR
Duties of an executor of a deceased estate
The executor will be responsible for the administering of the deceased estate in terms of the Administration of Estates Act 66 of 1965 and the duties are set out as follow:
• Taking control of the assets which form part of the estate
• Protecting and preserving the assets in the estate
• Properly identifying the beneficiaries in the estate
• Carrying out the legislative requirements regarding the administration of an estate
• Paying the debts and the administration expenses
• Attending to the final income tax return
• Distributing the balance of the estate to the beneficiaries

The Administration Process

As our commitment to you we will do all we can to ensure that your estate is administered within the time frames set out here under.
PLEASE NOTE THAT THESE TIME-FRAMES SHOULD BE REGARDED AS A GUIDE TO ASSIST YOU THROUGH THE PROCESS

Date of Death

Family to:
• Obtain Death Certificate
• Establish whether a Will exists
• Put deceased’s papers and documents in order
[1 - 2 weeks]

Preliminary Interview

Nominated Executor must establish:
• Whether a Will exists
• Who potential beneficiaries are
• An idea of the assets and liabilities in the estate
• Nominated executor will assist family to complete the necessary documentation
[2 - 6 weeks]

Application for appointment as Executor

The Master of the High Court must formally appoint the Executor and grant him the necessary powers to administer the estate.
The length of time this process takes is dependent on the Master’s Office, although every effort is taken to avoid unnecessary delays.
[6 weeks]

Advertise for Debtors and Creditors

Advertise in the Government Gazette & local newspaper
• Creditors have 30 days to lodge a claim
[16 - 24 weeks]

Liquidation & Distribution Account

• Details of assets & liabilities obtained
• Submit final tax return
• Account shows a “snapshot” of all assets and liabilities, the anticipated inheritance and beneficiaries, as well as income and expenditure items arising after date of death
[5 - 10 weeks]

Advertise Liquidation & Distribution Account for inspection

Advertise in the Government Gazette & local newspaper
• Lays for inspection for a period of 21 days
• Possible objections may be lodged with the Master
• The public have an opportunity to review the Account before it is finally approved by the Master
[2 - 6 weeks]

Distribution of Estate

• Obtain release from Receiver of Revenue
• Pay creditors
• Prepare Cash Statement
• Distribute assets
• Transfer fixed property
• Inheritance to the heirs is finalised and paid out.
[3 - 6 weeks]

Sign off by Master of the High Court

• Executor provides the High Court with proof creditors have been paid and assets distributed
• Estate finalised and duties of the executor are discharged
[34 - 54 weeks]

DECEASEDESTATES...