When a loved one dies they leave behind an estate, which in plain terms consists of all the assets and liabilities as at the date of the deceased’s death.
An estate of a loved one needs to be administered after their death. This entails a procedure during which the deceased’s expenses are paid and his or her liabilities are settled and the remainder of the assets are transferred to the deceased’s heirs.
There are a few fundamental questions which you need to ask yourself when dealing with the administration of a loved one’s estate.
Firstly, did the deceased have a will? If the answer is yes, the deceased’s assets will be distributed according to his or her wishes portrayed in his or her will. However, if the answer is no, the deceased’s assets will be distributed in accordance with the Intestate Succession Act.
This means the deceased’s estate will be divided among his or her surviving spouse, children, parents or siblings in terms of a set formula.
Secondly, in the event that the deceased did indeed have a will, did he or she appoint an executor? If an executor has been appointed he or she will have the duty to administer the deceased’s estate. If this was not done, the Master of the High Court will appoint an executor.
Any executor, whether appointed by will or by the Master, has the power to decline the appointment. Furthermore, if the appointed executor does not have the necessary legal experience to administer an estate, he or she can appoint an attorney to act as the agent of the executor and administer the estate of the deceased properly.
Thirdly, was the deceased ordinarily resident of South Africa? If the answer is yes, it is important to ensure the estate is reported to the Master of the High Court in whose jurisdiction the deceased was resident at the time of his or her death.
If the answer is no, the estate may be reported to any office of the Master of the High Court as long as it is not reported to more than one office.
Lastly, is the value of the estate more or less than R250 000? If the value of the estate exceeds the amount of R250 000, the Master of the High Court will issue letters of executorship in favour of the executor and the executor will have the duty to ensure the complete process of administering the estate is followed.
If the value of the estate is less than R250 000, the Master of the High Court will issue letters of authority in favour of the Master’s representative, who will be able to administer the estate without having to follow the full procedure.
The administration of an estate in the second instance is a lot faster, simpler and less costly and is known as a section 18(3) estate.
It is important to remember that the death of a loved one must be reported to the Master of the High Court within 14 days from the date of the death by either a surviving spouse, child or close relative of the deceased.
Should you require any assistance in administering the estate of a loved one contact Malherbe, Rigg & Ranwell Inc on 011 918 4116 to arrange a consultation with an estate administrator.
Article by Melissa Ward, candidate attorney at MRR.
