The legal framework
The administration of a deceased estate is carried out within the framework of, and in compliance with, the Administration of Estates Act 66 of 1965. The process involves a substantial amount of detailed administrative work, requiring accuracy and patience from everyone involved.
Reporting the estate
All relevant information and documentation must be collected and lodged with the Master of the High Court to report the estate and obtain either a Letter of Executorship or a Letter of Authority, depending on the estate's value. Since 24 November 2014, the threshold for the simplified process under section 18(3) has been R250,000. Almost nothing can be done to finalise the estate until this letter is issued.
Notices, creditors and the L&D account
Once appointed, the executor places advertisements in the local newspaper and the Government Gazette calling on all debtors and creditors of the estate to lodge their claims. The executor also notifies relevant financial institutions of the death, requests certificates of balance, closes the deceased's accounts and collects amounts owing to the estate. The executor then prepares the Liquidation and Distribution (L&D) account, reflecting all assets, liabilities and the proposed distribution to heirs.
Finalising the estate
Once the L&D account is approved by the Master and has lain for inspection without valid objection, immovable property is transferred at the Deeds Office, and movable assets such as vehicles, firearms and other property are transferred to the relevant heirs. Once the Master is satisfied that administration is complete, the estate is finalised.
AJ van Tonder Inc Attorneys