Frequently Asked Questions

A deceased estate comprises all the assets and liabilities of an individual who has passed away. Should the deceased have held any assets or left a valid will, the estate must be formally reported to the Master of the High Court within 14 days of the date of death. This is a statutory requirement, as stipulated by Sections 8 and 16 of the Administration of Estates Act 66 of 1965. However, if the deceased possessed no assets and did not leave a will, no such reporting is necessary.

It is typically the responsibility of a surviving spouse or a close relative to report the death. This should be done at the Master’s Office with jurisdiction over the area where the deceased resided for the 12 months immediately preceding their passing.

For estates with a gross value exceeding R250,000, the Master formally appoints an executor by issuing Letters of Executorship. In instances where an estate’s value is R250,000 or less, the Master may opt to appoint a Master’s Representative, as outlined in Section 18(3) of the Act. This streamlines the process, as it does not necessitate mandatory advertising for creditors or the preparation of a comprehensive Liquidation and Distribution (L&D) Account. For estates of R250,000 and above, the Master often requires the involvement of a professional agent, such as DEA, to ensure the rigorous standards of administration are met.

The specific documentation required can vary depending on the value and complexity of the estate. Generally, the following documents may be requested:

• Death Notice (Form J294)
• The official Death Certificate, along with a marriage certificate or a sworn declaration of marital status, and certified copies of identification documents.
• The original Last Will and Testament, including any codicils, if applicable.
• A Next-of-Kin Affidavit and an Inventory (Form J243).
• Signed acceptance and nomination forms for the proposed Executor.

The Executor, in accordance with the Administration of Estates Act 66 of 1965, has a range of crucial duties, including:

• Taking diligent steps to gather and secure all assets belonging to the estate.
• Opening an interest-bearing estate bank account and facilitating the closure of the deceased’s personal accounts.
• Placing advertisements for creditors (as per Section 29) in both the Government Gazette and a local newspaper, allowing a minimum of 30 days for claims.
• Drafting and lodging a comprehensive Liquidation and Distribution (L&D) Account within six months of the date of death (or three months for estates under R2,000).
• Advertising the L&D Account for public inspection (Section 35) for a minimum period of 21 days.
• Settling all valid claims against the estate and distributing assets only after the inspection period has concluded and the Master’s approval has been obtained.
• Applying for their official discharge as Executor once final distribution has been completed.

It is important to note that the Master will require the appointment of a professional Agent (Chartered Accountant or Lawyer) for all estates of and above R250,000.00.

The duration of estate administration can vary, but typical timelines are as follows:

• Reporting & Letters of Executorship: Approximately 2–4 weeks.
• Creditor Advertisement Period: 30 days.
• L&D Drafting and Processing: 4–6 weeks.
• L&D Inspection and Distribution: Roughly 2 months post-inspection.

Overall, the process commonly spans between 6 and 12 months, though it can extend longer depending on the estate’s complexity and the timely issuance of tax clearance certificates. Engaging a professional agent like DEA can significantly streamline this process by anticipating potential issues and diligently managing all stages of administration.

Executor’s fees are regulated by law:

• A standard fee of 3.5% on the gross value of the estate.
• An additional 6% on any income collected by the estate after the date of death, plus VAT if applicable.
• A minimum fee of R350 is payable.

Additional costs may include advertising expenses, valuation fees, premiums for security bonds, professional fees for specialists (such as our agent services at DEA, where applicable), estate duty (applicable to estates valued above R3.5 million), and other general administration expenses. We at DEA are transparent about all fees involved and will ensure you have a clear understanding from the outset.

Should the deceased have passed away intestate (without a valid will), the estate will be distributed according to the provisions of the Intestate Succession Act 81 of 1987. In such circumstances, the Master will appoint an executor dative to administer the estate in strict adherence to these rules. Our team at DEA can provide crucial assistance to executors dative, guiding them through the specific requirements of intestate succession.

If minor beneficiaries are due an inheritance, their shares may be deposited into the Master’s Guardian’s Fund. These funds accrue interest until the minor reaches the age of majority (18 years). Guardians are able to apply to the Master for the release of funds for the minor’s maintenance or educational needs. It is important to note that unclaimed funds revert to the State after a period of 30 years.

Executors are legally bound to act with the utmost diligence and care. Any errors or omissions – such as inaccuracies in distributions, incorrect tax filings, or improper accounting of assets – can lead to personal liability for the Executor. If a security bond was required, the Master may enforce it to recover any losses incurred by the estate. Furthermore, an executor may be removed from their position due to misconduct or inefficiency. Beneficiaries have the right to object during the L&D inspection period and may escalate matters to court within 30 days if their concerns are not resolved.

This is precisely where the expertise of a professional agent like DEA becomes invaluable. We help mitigate these risks by ensuring all legal and administrative procedures are meticulously followed, thereby protecting the Executor from potential liabilities.

The payment of inheritances to beneficiaries residing abroad necessitates approval from the South African Reserve Bank. This is particularly crucial for non-residents or individuals considered South African residents for exchange control purposes. DEA possesses the necessary expertise to navigate these international regulatory requirements, ensuring smooth and compliant distributions to overseas beneficiaries.

Several factors can contribute to delays in the estate administration process:

• Incomplete or inaccurate documentation, or ambiguities within the will.
• Delays stemming from the South African Revenue Service (SARS) in issuing tax clearance certificates or processing estate duty.
• Backlogs or administrative delays at the Master’s Office.
• Unresolved creditor claims or disputes over beneficiary instructions.
• Complex asset structures, challenges with valuations, or involvement of multiple international jurisdictions.

Engaging a professional agent like DEA can significantly reduce these potential delays. Our proactive approach and deep understanding of the process allow us to pre-empt many common hurdles, ensuring a more efficient and timely conclusion to the estate administration.