How to deal with a deceased’s estate
When a person dies leaving a valid last will and testament, it is known as Testate Succession.
Where a person dies without a (valid) last will and testament, it is known as Intestate Succession.
A deceased estate comes into existence when a person dies and leaves a document which is a will or is intended as a will.
Such an estate must then be administered and distributed in terms of the deceased’s will, or failing a valid will, in terms of the Intestate Succession Act, 81 of 1987.
The procedure which must be followed to administer a deceased estate is prescribed by the Administration of Estates Act, 66 of 1965.
The estate must be reported to the Master of the High Court in whose area of jurisdiction the deceased was living at the time of their death.
The estate of a deceased person must be reported to the Master of the High Court within 14 days from the date of death.
The estate is normally reported by the nominated executor or his agent.
The reporting documents will differ slightly depending on the value of the estate and the type of appointment required.
The magistrate office service points will only have jurisdiction if the deceased did not leave a valid will and the gross value of the estate is less than R50 000.
Letters of Authority entitle the nominated representative to administer the estate without following the full procedure set out in the Administration of Estates Act.
However, if the value of the estate is less than R250 000, the Master may dispense with Letters of Executorship, and issue Letters of Authority in terms of Section 18(3) of the Administration of Estates Act.
If the value of the estate exceeds R250 000, Letters of Executorship must be issued and the full process prescribed by the Administration of Estate Act must be followed.
The following reporting documents will be required:
* Completed death notice form J294.
* Original or certified copy of the death certificate.
* Original or certified copy of the marriage certificate (if applicable).
* All original wills and codicils or documents intended as such (if any).
* Next-of-kin affidavit Ð J192.
* Completed inventory form D J243.
* Nominations by the heirs for the appointment of an executor in the case of an intestate estate, or where no executor has been nominated in the will, or the nominated executor has died or declines the appointment.
* Completed Acceptance of Trust as Executor forms J190 in duplicate by the person(s) nominated as executor(s) or undertaking and Acceptance of Master Directions form J155 in case of a Section 18(3) Estate.
* Undertaking and Bond of Security J262 (unless the nominated executor has been exempted from providing security in the will, or is the parent, spouse or child of the deceased).
* Affidavit to the effect that the estate has not already been reported to another Master or Service Point.
* Certified copies of the ID of the deceased and the executor.
* Affidavit indicating the marital status of the deceased.
Administration of an estate
The reporting documents (as above) are delivered to the Master and then the Master appoints an executor.
The executor advertises in a local newspaper and the Government Gazette, inviting all creditors to prove their claims and an estate bank account is opened by the Executor.
The executor winds up the estate after which a Liquidation and Distribution (L&D) account is drawn up.
The Master of the High Court approves the L&D account which then has to lay open for inspection at the local magistrate office for 21 days.
The executor has to advertise in a local newspaper and the Government Gazette that the L&D account will lay open for inspection at the magistrate court.
If there are no objections to the L&D account, the executor pays out all the creditors and the heirs.
Final documents and affidavits are submitted to the Master to close the estate file.
For more information concerning wills and estates contact Jan L. Jordaan Inc. Attorneys on 011 748 4500.
