What Is a Deceased Estate?
What is a deceased estate?
A deceased estate is the collection of all the assets, liabilities, property and financial interest, which are left behind by the person who passed away. This includes movable and immovable property.
Movable property are things which is able to be moved such as:
- cars,
- furniture,
- jewelry,
- livestock,
- intangible assets (stocks, bonds, and intellectual property right) and
Immovable property are things such as:
- land,
- buildings,
- natural resources and;
- infrastructure (permanent structures affixed to the land, building or property).
When must a deceased estate be reported?
South African law requires that all deceased estates must be reported to the Master of the High Court within 14 days of the date of death.
Reporting of the date of death must be done if;
- The person died within South Africa and left property or a will; or
- The person died outside of South Africa but have left property or a will within the country.
The estate is then reported to the Master’s Office in the jurisdiction where the deceased lived during the 12 months before his or her death.
The Law of Deceased Estates
Deceased estates are governed by the following acts:
- Administration of Estates Act 66 of 1965;
- Intestate Succession Act 81 of 1987 and;
- Wills Act 7 of 1953.
These acts help to regulate:
- how an estate must be reported;
- how executors are appointed;
- the powers of executors;
- how creditors must be notified;
- how distributions must be made and;
- the process where a person dies without a will.
This entire process is overseen by the Master of the High Court.
What are the implications of having a Will vs Not having a Will:
If the deceased left a valid will (Testate Estate):
The estate will be administered according to the express wishes of the deceased, as stated in the will. The executor is nominated in the will and then appointed by the Master. The distribution of the assets are all guided by the will, subject to legal requirements.
If the deceased had no will (Intestate Estate):
The Intestate Succession Act 81 of 1987 is used in order to determine who inherits the assets of the deceased.
The order is as follows:
- Spouse and children
- Parents of deceased
- Siblings of the deceased
- Distant relative of the deceased
If the deceased does not have any of the above, the assets will devolve to the State.
Disadvantages of not having a will:
- Life partners who were not legally married do not inherit.
- This oftentimes leads to disputes, delays and administrative complications.
It is therefore highly recommended to have a valid will, in order to lighten the burden on everyone, during such a difficult time.
Documents that must be submitted to the Master
The required documents differ slightly depending on whether the estate was testate or intestate.
For Testate estates:
- Original death certificate
- Original will
- Death notice (J924 form)
- Details of the deceased
- Executor’s details
- Next of kin information (J192 form)
- Estate information
- Inventory of assets (J243 form)
- Marriage certificate or marital regime documents
- ID copies of the heirs
- Nominated executor’s acceptance form
- Declaration that the will is the last will and testament.
For Intestate Estates
- Original death certificate
- Next-of-kin affidavit
- Details of the deceased
- Executor’s details
- Next of kin information (J192 form)
- Estate information
- Inventory of assets (J243 form)
- Marriage certificate if applicable
- Lists of potential heirs and ID copies
- Nominations for an executor by the heirs
- If someone refuses to become an executor, the role can be declined by way of a formal process known as renunciation.
- If the executor refuses perform his/her obligations, it will bring the entire administration process to a standstill.
- Acceptance of trust of nominated executor.
If all these documents are before the Master, he/she will issue either:
- Letter of Executorship (estates larger than R250 000);
- Letters of Authority (estate below R250 000).
How long does estate administration take?
Every estate is different, but the average timeframe is 6-12 months, for an uncontested and efficiently managed estate. More complex estates will take longer.
Common causes of delays include:
- Disputes between the heirs;
- Unclear or invalid wills;
- Missing documents;
- Property sales;
- Tax complications;
- Waiting for responses from SARS and the banks;
- High workloads of the Master’s Office.
The Stages of Estate Administration
- Reporting the estate
The estate must be formally reported within 14 days, and all required documents must be submitted to the Master.
- Appointment of Executor
The Master issues a Letter of Executorship or a Letter of Authority, empowering the executor to begin administration.
- Securing and valuing assets
The executor gathers information, secures the estate’s assets and determines their value.
- Notice to Creditors
Section 29 notices are published in the Government Gazette and a local newspaper. Creditors will have 30 days to lodge claims against the estate.
- Liquidation and Distribution account
The executor will prepare a detailed account that reflects:
- Assets;
- Liabilities;
- Proposed distribution.
This account is then lodged with the Master for approval.
- Inspection period
Section 35 notices are published in the Government Gazette and a local newspaper, notifying any creditors, to file objections.
The account is open for 21 days, where any objections must be filed during this period.
- Master’s Consideration and approval
Once the account is approved, all debts are paid, and the executor is authorized to distribute the remaining assets to the beneficiaries.
- Finalization
Once the distribution is completed and receipts are obtained, the Master must confirm that all requirements have been met and then discharge the executor. The estate is then closed.
Conclusion
Dealing with a deceased estate can be overwhelming for families, who are already facing such emotional stress. The legal procedure is extremely technical, paperwork-heavy and time-sensitive.
If you require professional assistance with winding up a deceased loved one’s estate, please contact us. Our team will guide you through every step to ensure that the estate is handled lawfully, efficiently and with the utmost care.