DECEASED ESTATES

What is a deceased estate?

A deceased estate comes into existence when a person dies and leaves behind assets of any kind. If there is a Last Will and Testament, the deceased estate is administered and distributed in terms of the deceased Will. In absence of a valid Will, the deceased estate will be distributed in terms of the Intestate Succession Act, 81 of 1987. The Administration of Estates Act,66 of 1965, prescribes the procedure which must be followed to administer a deceased estate.

Who handles the deceased estate?

An executor of the estate is the person appointed to handle the process of settling the estate. The executor will be nominated either in the deceased Will or by the heir of the deceased.

The executor will perform the following:

- Open a bank account

- Place Sec29 advertisement notice to debtors and creditors. This provides an opportunity to lodge formal claims against the estate

- Collect information on all assets and liabilities in the name of the deceased.

- Finalize tax affairs with SARS

- Calculate and pay any estate duty, if applicable

- Compile and lodge a liquidation and distribution account

- Pay debts and administration fees

- Distribute the remaing assets in the estate as oer the Last Will and Testament

When and by whom must estates be reported?

- The estate of a deceased person must be reported to the Master of the High Court within 14 days of the date of death.

- The death is to be reported by any person having control or possession of any property or documents that is or intends to be a Will of the deceased.

- The estate is reported by lodging a completed death notice and other supporting documents with the Master which may be obtained from any Office of the Master of the High Court, Magistrate's Office.

What are the costs to wind up a deceased estate?

Administrative cost - this includes advertisement costs, postage, executor's fees, Master's fees, and the conveyancing fees to transfer fixed property.

The executor's prescribed fee is 3.5% (excluding VAT) on the value of the gross assets in the estate.