A deceased estate comes into existence when a person dies and leaves a will. The estate must be administered and distributed in terms of the deceased’s will. If a person dies without leaving a valid will, the estate must be administered and distributed in terms of the Intestate Succession Act.
The reporting documents will differ slightly depending on the value of the estate. If the deceased did not leave a valid will and the gross value is less than R50,000.00 the estate can be reported at the Magistrate’s office, who can issue a Letter of authority authorising a nominated representative to administer the deceased estate.
If the value is less than R250,000.00 (but more than R50,000.00 or there is a valid will) the estate is reported to the Master of the High Court. They will issue a Letter of Authority.
If the value of the estate is more than R250,000.00 the estate is reported to the Master of the High Court who will issue a Letter of Executorship.
The procedure which must be followed to administer the deceased estate is prescribed by the Administration of Estates Act.
The process to finalise a deceased estate:
- The Master appoints an executor.
- The executor advertises in a local newspaper and the government gazette
- The executor opens an estate bank account.
- The executor collects all monies due to the estate.
- A Liquidation and distribution account (L&D) is drawn up.
- The Master approves the L&D.
- The L & D lies open for inspection for 21 days.
- The executor advertises the L & D in a newspaper and the government gazette.
- If there are no objections, the executor pays all creditors and the beneficiaries.
If you have a relative that passed on but did not leave a valid will, Etha Smit Attorneys can assist them to administer the deceased’s estate in terms of the Act.