01Reporting the Estate
Every deceased estate must be reported to the Master of the High Court. The death notice should be lodged within 14 days of the death, together with the original will, if there is one, and the supporting documents the Master requires. The Master's Office with jurisdiction is generally the one for the area where the deceased ordinarily lived.
The Master then issues the authority to administer the estate:
- Letters of Executorship for estates with a gross value above R250,000.
- Letters of Authority under section 18(3) of the Administration of Estates Act for estates of R250,000 or less, which follow a simpler procedure.
02The Administration Process
- Report the estate and obtain the executor's appointment from the Master.
- Advertise for creditors in the Government Gazette and a local newspaper, giving creditors the statutory period to lodge their claims.
- Open an estate bank account and take control of the assets.
- Value the assets, settle debts and deal with the deceased's tax affairs with SARS.
- Prepare the liquidation and distribution account and lodge it with the Master, ordinarily within six months of the executor's appointment.
- Advertise the account for inspection for 21 days, then pay the beneficiaries and transfer property once the Master raises no objection.
- Close the estate and obtain the executor's discharge.
Most straightforward estates take between six and twelve months. Estates with property, business interests, disputes or offshore assets take longer.
03Estate Duty and Costs
Estate duty is payable on the dutiable value of an estate at 20 percent on the first R30 million and 25 percent above that, after a primary abatement of R3.5 million. Bequests to a surviving spouse are generally deductible. Capital gains tax may also arise on death.
The executor's remuneration is set by the tariff under the Administration of Estates Act at a maximum of 3.5 percent of the gross value of the assets and 6 percent of income earned after death, plus VAT where the executor is a VAT vendor. We discuss our fees with your family before we begin.
04How We Help
- Executor services, where we are nominated in the will or by the heirs.
- Assisting family executors with the legal and administrative steps.
- Small estates under section 18(3), handled efficiently and at proportionate cost.
- Wills and estate planning, including trusts, succession planning and reducing estate duty within the law.
- Estates without a valid will, administered under the Intestate Succession Act.
05Frequently Asked Questions
How long does it take to wind up an estate?
Most straightforward estates take between six and twelve months from the date the estate is reported. The Master's Office workload, property transfers, SARS clearances and disputes between heirs can all extend the timeline.
What if there is no will?
The estate is distributed under the Intestate Succession Act 81 of 1987, which sets out who inherits, usually the surviving spouse and children. An executor is still appointed and the same administration process applies.
Can a family member be the executor?
Yes. Any suitable person may be appointed, and the Master may require security. Many families prefer to nominate an attorney because of the legal, tax and accounting work involved, or ask an attorney to assist the family executor.
What is the difference between Letters of Executorship and Letters of Authority?
Letters of Executorship are issued for estates with a gross value above R250,000 and follow the full administration process. Letters of Authority are issued under section 18(3) of the Administration of Estates Act for smaller estates and allow a simpler procedure.
Speak to an attorney. This page is general information and not legal advice. For advice on your situation, book a consultation or call +27 (0) 11 064 4890.
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