02 Deceased Estate Article

Step by step process of administering a deceased estate

Upon the death of a loved one, the family and/or next of kin are left with the unfortunate task of reporting and administering the deceased’s estate. 

The following is a short explanation of the steps required in administering a deceased estate:

Step 1

Reporting the Estate

Obtain the last will and testament of the deceased and lodge the following documentation at the Master of the High Court:

  • Death notice
  • The Will (if any)
  • An inventory of the fixed property, movable assets and claims including all policies in the estate. Information of about debts should also be obtained
  • Acceptance of trust as executor
Step 2

Letter of Executorship / Letter of Authority

After the estate has been reported, the Master of the High Court will issue a Letter of Executorship. 

If the estate’s value is below the threshold of R250 000, then the Master of the High Court will issue a Letter of Authority. 

The executor takes the responsibility to pay all debts, to recover all claims in favour of the estate, to maintain, recover and realise assets and to divide the estate amongst the beneficiaries or heirs.

Step 3

Advertise to the Creditors

A Legal notice is published in the Government Gazette and a local newspaper calling on all creditors to lodge their claims in the estate with the executor. The period within which the creditors can lodge their claims is 30 days from date of advertisement.

Step 4

Open an Estate Account

An estate account needs to be opened in the name of the deceased estate into which all funds received are paid into. 

Step 5

Draft Liquidation and Distribution Account

The executor drafts a liquidation and distribution account wherein all the debts and assets are listed and the executor will set out how the assets will be distributed amongst creditors, beneficiaries and heirs. The draft Liquidation and Distribution Account is submitted to the Master of the High Court for consent.

The following are headings of the different sections of the draft Liquidation and Distribution Account: 

  • 1. Heading
  • 2. Money column
  • 3. Liquidation account
  • 4. Recapitulation statement (cash position)
  • 5. Distribution account
  • 6. Income and expenditure account
  • 7. Account of fiduciary assets
  • 8. Estate duty return
  • 9. Executor’s certificate
Step 6

Publish Liquidation and Distribution Account

A legal notice is published in the Government Gazette and local newspaper to all interested parties after the Master of the High Court consented to the liquidation and distribution account that the account lies open for inspection for a period of 21 days.

Step 7

Distribution

After the inspection period has expired, the executor is able to distribute the assets according to the liquidation and distribution account.

Step 8

Executor Released from Duty

The executor is released from duty on approval by the Master of the High Court.

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