The steps required to administer an Estate
Dealing with deceased estates requires compassion and understanding as the loss of someone close to you can be very traumatic and winding up of a deceased estate can be a lengthy and challenging task. Our professional staff are here to assist you every step of the way.
Step 1
If the deceased executed a Will before passing their estate will be administered in terms of the Administration of the Wills Act.
If the deceased passed away without a Will their estate will be administered in terms of the Intestate Succession Act.
Step 2
The deceased estate must be reported to the Master of the High Court’s offices within the jurisdiction that the deceased lived.
The estate must be reported by the Executor who can appoint an Agent such as our firm to assist in the reporting and administration on their behalf.
Step 3
An Executor will be appointed in terms of the person nominated in the Will.
Where a person dies without a Will, the heirs to the estate may nominate someone to be Executor of the estate.
In both instances the Executor can appoint an attorney to administer the estate on their behalf.
Step 4
If the assets in the estate are valued at over R250 000.00 Letters of Executorship will be issued by the Master of the High Court.
If the assets in the estate are valued at under R250 000.00 Letters of Authority will be issued by the Master of the High Court where a Representative will be appointed and there are no further dealings with the Master as the Representative is authorized to finalise the estate.
All estates regardless of their value need to be reported.
Step 5
The function of the Executor or his/her Agent is:
- Obtaining Letters of Executorship or Letters of Authority whichever is applicable
- Place a notice to creditors in the local newspaper and Government Gazette giving creditors and debtors 30 days to lodge any claims
- Open a bank account for the deceased estate
- Close the deceased’s bank accounts
- Collect the assets for the deceased estate
- Conforming with the requirements of SARS and finalizing all tax matters
- Settle the liabilities of the deceased
- Make payments to creditors
- Draft a First & Final Liquidation & Distribution Account which on approval by the Master must be advertised to lie for inspection at the Magistrate’s Court in the jurisdiction that the deceased resided for a period of 21 days
- Sell or transfer the immovable property of the deceased
- Distribute the estate in terms of the Will or if there is no Will in terms of the Instates Succession Act
Executor’s fee
The Executor’s fee is calculated at 3.5% on the gross value of the assets and 6% on income after the date of death. We are always open to discuss and negotiate the fee.