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We specialise in Deceased Estates Administration and Executorship.
Deceased Estates Administration: A deceased estate comes into existence when a person dies leaving property behind that needs to be distributed to their beneficiaries. If there is a will or a document that purports to be a will this can give guidance to how the deceased property should be distributed.
The Estate Administration Process
The Deceased Estates Administration of your loved one’s estate begins the moment it is reported to the Master of the High Court. It is a step-by-step process.
There are several Masters Offices around the country. The Master’s Office you should approach is determined by which Master’s Office has jurisdiction in the area your loved one permanently resided in.
Once the estate has been reported, the value of the estate is determined. In terms of the Administration of Estates Act, if an estate is worth less than R 250 000.00, you can request a Letter of Authority from the Master’s Office. A Letter of Authority gives the executor the power to administer the estate in terms of the Will. When you receive the Letter of Authority, you can proceed to wind up the estate according to your loved one’s wishes. You do not have to follow the usual administration process because the value of the estate falls below the stipulated amount in the Act. You can then file the proof of the winding up with the Master’s Office and the matter may be concluded.
However, if the estate is worth R250 000.00 or more, you will have to request for a Letter of Executorship from the Master’s Office. A Letter of Executorship gives the executor the authority to wind up the estate however, the Master’s Office will insist that you approach a professional that is qualified to wind up the estate such a lawyer, your banker or broker. There are several legal steps that require the skill and efficiency to abide by legislation and the requirements of the Master’s Office to wind up the estate.
We are confident in our ability to guide you through the Deceased Estates Administration process that may seem complex at the outset, but which we can simplify for you.
Here are the steps we follow
to make it very simple and burden-free for you!
1. You begin the process by submitting your information to us and requesting a consultation.
2. We consult with the family, explain the process to you and collate all the documents that are required by the Master’s Office to lodge the estate. This must be done within 14 days from the date of death or so soon thereafter.
The documents required to lodge the deceased estate will be provided by our offices. We will explain the purpose of each document to you and show you how each document should be signed and by whom. These are prescribed documents by the Master’s Office. Careful completion of it is imperative so that the Master can lodge the estate without queries or delay. The Master will give the estate a reference number. This reference number must be used on all correspondence sent to the Master’s Office.
3. We request for the Letter of Executorship which takes approximately 4-8 weeks.
If you do not possess an issued Letter of Executorship, there will be no authority to wind up the estate. The Letter of Executorship is arguably the most important document you will receive during the administration of the estate because it provides proof that you are authorised to make decisions. The Letter of Executorship is always a prerequisite for any action taken for and on behalf of the estate such as opening bank accounts, paying monies, initiating a sale, submitting further documents to the Master and even liaising with institutes of interest related to the estate.
4. When the LOE is obtained, we advertise a Notice to all Creditors of the estate in terms of Section 29. Creditors have 30 days to come forward with their claims.
A section 29 Advertisement is a Notice to creditors to institute their claims against the estate within 30 days from the date of publication of the advertisement. The advert must be placed in one local newspaper that circulates in the area that the deceased was a permanent resident of and the Government Gazette. The advertisements in both the newspaper and the Government Gazette must be published on the same day. Proof of the advertisement must be kept safely for future reference.
5. An estate Late Bank account must be opened.
An estate late bank account is opened when the executor has monies in excess of R 1000.00 (one thousand rand). All monies received and paid on behalf of the estate must strictly be received in the estate late bank account. The bank records will later be submitted to the Master’s Office for review.
6. After the period of 30 days has lapsed and within 6 months after receiving the LOE, we draft the Liquidation and Distribution account.
First, we will obtain valuations of property both immovable and movable, if necessary, to identify which items are to be sold or inherited and to determine the gross value of the estate and its liabilities. The information is recorded in the Liquidation and Distribution Account. We submit the Liquidation and Distribution account to the Master’s Office together with supporting documentation such as bank account statements, proof of advertisement and proof of any sales that took place. The Master will revert to us in respect of whether there are any queries with the Liquidation and Distribution account. If there are queries received, we will amend the Liquidation and Distribution account according to the Master’s instructions. If there are no queries, we may proceed with the next step.
7. Once the Master has granted his approval of the Liquidation and Distribution account, we advertise the L&D in terms of Section 35 for it to lie for inspection at the local Magistrates Court and Master’s Office.
The advertisement in terms of Section 35 must be advertised in one local newspaper circulating the area that the deceased was a permanent resident of and the Government Gazette. Both advertisements must be published on the same day. Proof of the advertisement must be retained. This advertisement notifies all interested parties that the Liquidation and Distribution account will stay for inspection at the local Magistrates Court for a period of 21 days. Interested parties may view the Liquidation account during this period. Should any part have an objection to the liquidation account, they may notify the Master.
8. If there are no objections received, the final distribution of the estate can take place.
9. All debts are settled, taxes are paid, the heirs receive their inheritance and beneficiaries are paid.
10. The proof of same is submitted to the Master who then returns a filing slip to confirm that the matter is concluded, and the file will be closed.
REDISTRIBUTION AGREEMENTS
You may have inherited an asset from your loved one’s estate, along with other heirs. During the process of administration, you and the heirs may have discussed how you would have preferred an asset that another heir has inherited. There is no prohibition from allowing heirs to swop their inheritances.
A typical scenario would be: You have inherited R 500 000 in cash and your sister has inherited your parents’ home. Your sister has expressed her desire to have cash instead of a house because it would prove far more useful to her. You and your sister have decided that it would be better for you to receive the house and for her to inherit R 500 000.
This would be recorded in the form of a Redistribution Agreement.
The Redistribution Agreement would be drawn up for all the heirs concerned, to stipulate the terms of inheritance as per the deceased’s Will. It will then clearly set out the exchanges that have occurred between the heirs i.e., what each heir has received and what it was in exchange for. All the heirs must date and sign the Redistribution Agreement. It must accompany the Liquidation and Distribution Account so that the Master may compare both documents and authorise the changes that will take place.
It’s all about being informed! Do not hesitate to reach out to us with your questions so that we can make sure you have all the information you need to make informed decisions and enjoy the process of administering your loved one’s estate.