30/09/2019
WINDING UP OF DECEASED ESTATE
Did you know that when a person passes on his/her estate needs to be reported and wind up?
A deceased estate is wind-up either by obtaining a letter of authority or letter of executor ship from the Masters office. The time required to wind up an estate depends largely on the size and structure of the estate,
Letter of Authority
• The value of the deceased estate must be less than R250 000.00
• You can obtain this letter without involving an attorney. It’s a very quick process.
Letter of Executorship
Once the estate has been registered, the Master will issue a Letter of Executor ship which effectively authorizes the Executor to represent the deceased estate. The Executor has authority to open an estate late bank account, notify third parties of the death, collect all assets, advertise for creditors and settle any debts of the estate. This letter is obtained when the value of the estate is more.
• An attorney is involved in the reporting until finalization of the estate.
• You can appoint an executor in your will, in that case; the executor will not have to lodge a bond of security.
This process can take long as it includes, advertising to the government gazette and a newspaper circulating in the area where the deceased resided. The first advertisement is to call upon any creditors which the deceased might have owed during his lifetime. Creditors are given 30 days to lodge their claims.
• After this advertisement, the executor prepares a liquidation and distribution account and submit to the Masters office for approval. Once approved, the second advertisement is published also in the government gazette and a newspaper circulating in the area where the deceased resided. This advertisement notifies any interested person who may wish to inspect and or object to the distribution account. The account lies open for a period of 21 days.
Once this process is completed without any objections and all creditors and heirs paid accordingly, the executor submits all the relevant documentation to the Master in preparation for the closing of the file.
• It is important to note that not only family members are appointed as executors. The family can opt to appoint an attorney as the executor of the deceased estate. In that case, a bond of security will need to be lodged which also increases the time to wind up and finalize the estate.
Winding up an estate is a complex and lengthy process that can take anything between 5 months to a number of years to complete. Having an experienced Executor who is familiar with the mechanisms and procedures of winding up deceased estates is to the benefit of the family and beneficiaries.
You can visit our office for a detailed consultation on the above.
