Deceased Estate Administration / Boedelbereddering
What happens to a deceased person's property?
The personal property and possessions of deceased persons, as well as any monies owed to them and by them, are known as deceased estates.
The winding up of a deceased estate, especially if it is one besieged with disputes over assets and debts, can tax the country's best legal minds.
Yet, what is meant to happen is quite simple: when people die, their representatives, known in legal terms as executors, settle all outstanding debts, after which the remainder of the estate is passed on to the deceased's heirs or beneficiaries.
An executor's first duty is to locate the will, if there is one. If the will cannot be found among personal papers, inquiries should be made at the deceased's lawyers, accountants, bank or insurance company. It may be in safekeeping with one of them.
If it cannot be traced, even though relatives may be positive that one exists, the estate must be administered as if no will had been drawn up.
Some deceased estates are burdened with so many complicated issues that winding up can be completed only with the help of a attorney.
Here are examples of situations that may require legal expertise:
- If there is no will and part of the estate is earmarked for minors under the age of 18.
- The estate is either insolvent or so heavily in debt that there are insufficient assets to pay the debts and legacies.
- Trusts may have to be administered.
- An executor may want to work through an attorney to establish a neutral referee in dividing up an estate among quarrelling heirs or relatives.
- The estate may include a business worth a great deal of money.
The task of the deceased's executor, or executors, where more than one was appointed, is to:
- Evaluate the estate and its debts
- Prepare documents required by the Master of the Supreme Court, who authorises any dealing on behalf of the estate
- Obtain authority to handle the estate
- Collect the assets of the estate
- Settle any debts, estate duty, income tax, or Master's fees.
- Pay legal fees and bequests, and distribute or invest the remainder of the estate as required by a will, or according to the rules pertaining to intestate succession.
Documentation
The following documents and papers need to be submitted to the Master of the High Court as soon as possible to expedite the appointment of the executor:
- Identity documents
- Death certificate
- Death notice
- Acceptance of executorship
- Inventory
- Last will and testament
- Next of kin affidavit if the deceased had no will
The following documents are required by the appointed executor to start the process of liquidating the deceased estate:
- Antenuptial contract if married out of community of property
- Divorce order and settlement agreement if applicable
- Deed of transfer - fixed property
- Registration certificates - vehicles
- Share certificates and/or receipts/statements from Central Securities
- Depository participant
- Fixed deposit receipts/statement
- Lease agreements
- Life assurance, endowment and retirement annuity contracts
- Account of regular doctor
- Last payslip or service contract
- Medical aid membership card or claim advice
- Last income tax assessment or copy of previous return
- Recent consumer accounts, Municipality, Telephone
- Unused chequebook
- Savings statements
- Credit and debit cards
- Short-term insurance schedule (fire, theft and accident cover)
- Outstanding accounts
- Any statement or correspondence relating to the financial affairs of the deceased
- Buy/sell (partnership) agreement in respect of any business interests
- Valuations for capital gains tax purposes
The Master of the Supreme Court grants letters of executorship to those persons who have been authorised to deal with the estate and who have agreed to accept the job of winding it up.
Several copies of this document will, for example, be needed by banks, insurance companies and legal firms that may hold assets pertaining to the deceased.
These institutions regard the 'letters of executorship' as proof that the assets they hold will be passed on to the properly authorised representative of the deceased estate.