Administration of Deceased Estates
1. Reporting the matter to the relevant office of the Master or the Magistrate:
All deceased estates have to be reported to the Office of the Master of the High Court, or if the estate qualifies, it may be reported to the Office of the Magistrate of the District where the deceased normally resided.
Reporting the matter to the wrong institution may delay the finalisation of the administration of the estate.
There are a lot of documents that have to accompany the letter of death notice, and for that purpose it is suggested that you make use of the services of an attorney.
2. Appointment of the Executor:
Normally the Last Will and Testament of the deceased will indicate who should serve as the Executor of the estate and whether such person is to set security to the Master or not.
In the absence of a Will the matter becomes more difficult, and an Executor has to be nominated by the next of kin of the deceased. The Master may appoint more than one Executor if the circumstances allow or if the Next of Kin nominates more than one person.
The Master will then appoint an Executor and will then also decide if security for the due administration is required to be set.
3. Security:
If the Master requires security to be set, then an insurance policy is normally arranged at the expense of the estate to insure the assets. There are other forms of security that can be set and arranged for.
4. Notices:
Upon appointment, the Executor has to publish notices in the local newspaper and the Government Gazette for the attention of creditors of the estate.
Notices have to be published again when the Liquidation and Distribution account has to lie for inspection after the Master has accepted it as correct.
5. Assets:
Assets of the estate have to be maintained during the administration process. Any negligence in this regard may lead to liability of the Executor for damages suffered by the estate.
Assets may not be used by the Executor for his/her own personal use, as this may lead to criminal offences and charges.
Once the administration of the estate has been completed, the assets have to be transferred to the respective heirs.
An asset may form part of a legacy, and then that specific asset has to be transferred to the specific legatee.
6. Importance of Estate Planning:
It is very important for each person having an estate to plan for unforeseen contingencies. Factors that have to be taken into account are estate duty (tax), legacies, investments, inheritance due to minors, trusts, debts, insurance, and such.
It is hereby proposed that you contact your attorney and obtain advice regarding your estate and the drafting of a proper will or the update of your existing Will.
Once you have met your demise, it will be too late, and then the family is left to try to salvage your estate.