What is it and what does it entail?
This is the process where the deceased's estate (assets / belongings) is wound up and divided in accordance with his or her will or in terms of the laws of intestate succession. In order to wind up the estate it must first be reported to the Master of the High Court in the area in which the deceased was ordinarily resident at the time of his or her death. Prescribed forms as well as certain supporting documents must be submitted to the Master's Office for letters of executorship or letters of authority to be issued as required. Letters of executorship will be issued where the deceased died before 24 November 2014 leaving an estate with a value of more than R125,00.00. If the deceased died before 24 November 2014 with an estate value less than R125,000.00 then letters of authority will be issued. For persons who died on or after 24 November 2014 the threshold is R250,000.00.
We assist in this field by consulting with the family or any other interested parties to obtain necessary information and documents to report the estate to the Master of the High Court. Once an appointment letter has been issued we then attend to the administration of the estate under special power of attorney of the appointed person. As we are required to comply with various requirements in the administrative process and the deceased was unknown to us, as many of the following documents as are available will assist us in administering the estate without delays:
Personal documents
- Last signed original will (or particulars of where it may be obtained)
- Identity document of the deceased
- Death certificate
- Marriage certificate
- Antenuptial contract (if applicable)
- Name and date of death of any predeceased spouse (if applicable)
- Divorce order and deed of settlement (if applicable)
- Name and address of deceased's employer, stating the staff number
- Pension number, name and address of pension fund
- Membership number, name and address of medical fund
Banking and investment details
- Bank account details
- Credit card details
- Last cheque book
- Bank statements
- Particulars of safety deposit boxes at any bank
- Mortgage bond details
- All debts (or particulars thereof) owed by the deceased
- Promissory notes in respect of loans owed to the estate
- Share certificates or name of institution where portfolio is managed or electronically kept in custody
- Unit trust certificates/notices
- Any other investment certificates
Insurance policies
- Details of life insurance, funeral, and other long-term insurance policies
- Details of short-term insurance policies for assets
Agreements / Business interests
- Lease agreements
- Partnership agreements
- Shareholders’ agreements
- Association agreements
- Any Deed of Sale in which the deceased had an interest
Licences / Registration Certificates / Title Deeds
- Firearm licences
- Motor vehicle registration certificates
- Title deeds
- Sectional title deeds
- Timeshare certificates or particulars where obtainable
Tax affairs
- Income tax reference number and office where registered
- VAT registration number (if applicable)
Other
- Copies of identity documents of all heirs
- Email addresses and contact particulars of all heirs
- Other documents and information you think may be of interest to the executor.
The administration process entails the following main things after the appointment letter is issued by the Master of the High Court:
- Placing the prescribed notice for debtors and creditors in the government gazette and a local newspaper that circulates in the area in which the deceased was ordinarily resident at the time of his death;
- Collecting assets of the estate and any claims in favour of the estate;
- Ensuring that firearms are correctly handled;
- Carrying on of deceased’s businesses;
- Paying interim maintenance of the surviving spouse and minor children;
- Opening an estate late bank account;
- Calculating accrual claims;
- Considering any claims in terms of Maintenance of Surviving Spouse Act;
- Considering other claims against the estate;
- Paying out estate debts;
- Preparing and filing Estate Duty returns;
- Filing income tax returns or applying for tax clearance certificates;
- Drafting the liquidation and distribution account;
- Placing the prescribed notice in the government gazette and a local newspaper that circulates in the area in which the deceased was ordinarily resident at the time of his death advising that the liquidation and distribution account is now lying open for inspection;
- Dealing with objections to the liquidation and distribution account;
- Distributing assets to the heirs;
- Obtaining a discharge note from the Master of the High Court after the estate has been distributed.
What are the costs?
The main costs in the administration of a deceased estate are as follows:
- Master's fees payable to the Master of the High Court. The amount payable depends on the value of the estate. The fees are therefore calculated as follows:
- If the value of the estate exceeds R15 000 but is less than R17 000, then R42
- If the value of the estate exceeds R17 000, then a further R6 is charged for each next full R2 000 by which the gross value exceeds R17 000
- Subject to a maximum fee of R600
- Executors' remuneration, of which the maximum tariff is determined from time to time in the regulations to the Administration of Estates Act. The current maximum tariff (excluding VAT) is:
- 3.5% on the gross value of the estate assets, including on the gross value of a community estate (excluding assets payable outside the estate direct to beneficiaries), and
- 6% of all incomes (e.g. rentals, interest and dividends) which the executor collects on behalf of the estate from the date that you die to the date of final execution of your estate.
There are other costs which an estate may incur, such as valuation costs for certain assets, which our clients are advised of as the matter progresses.
Our service offering
We can assist you regardless of whether or not the deceased had a will. If you require services for administration of deceased estates or have a query regarding such estates, please contact us.