WHAT TO DO WHEN A LOVED ONE PASSES AWAY?

DECEASED ESTATES

Death is an inevitable eventuality for all of us, yet so many of us shy away from speaking about it. Should you die today, will your loved ones know what to do? Will your interests be protected and will dependants be taken care of?

Below is a guide on what to do when the inevitable eventuality becomes a reality.

When a person passes away, their estate must be reported to the Master of the High Court in the area where the deceased ordinarily resided. This must be done by an interested party (such as a family member or representative) within 14 days of the death.

The documents required to report the estate may vary slightly, depending on the total value of the estate and the type of appointment that will be made.

Estates exceeding R250 000:

If the total value of the estate is more than R250 000, the Master will issue Letters of Executorship. In this case, the estate must be administered in accordance with the full procedure prescribed by the Administration of Estates Act 66 of 1965. (“The Act”)

Estates below R250 000:

If the estate is valued at less than R250 000, the Master may simplify the process by issuing Letters of Authority in terms of section 18(3) of the Act. This allows the appointed person to administer the estate using a less formal process.

A person who receives Letters of Authority is legally authorised to administer the estate, but is not required to follow the full, formal procedures applicable to larger estates.

Understanding the difference; Letters of Authority vs Letters of Executorship

Letters of Executorship

Main Features:

Issued by the Master of the High Court for estates exceeding R250 000

Appoints an executor to administer the estate

Requires full compliance with the Administration of Estates Act 66 of 1965

Involves a formal and detailed process

Duties of the Executor:

Take control of all estate assets

Open an estate bank account

Advertise the estate for creditors

Compile and submit a Liquidation and Distribution Account (L&D Account)

Pay debts and taxes

Distribute the remaining assets to heirs/beneficiaries

Report regularly to the Master

Letters of Authority

Main Features:

Issued for estates below R250 000 (Section 18(3))

Appoints a representative instead of an executor

Simplified and less formal administration process

Duties of the Representative:

Collect and safeguard assets

Settle debts of the estate

Distribute assets to beneficiaries

Act honestly and in the best interests of heirs

When Responsibility Ends (Both Executor and Representative)

The duties come to an end when:

The estate has been fully administered

All debts and taxes are paid

All assets have been distributed to beneficiaries

The Master of the High Court is satisfied with the administration

For executors specifically:

Responsibility formally ends once the Liquidation and Distribution Account is approved by the Master, implemented, and the estate is finalised.

For peace of mind during the difficult period following the passing of a loved one, book a consultation with one of our qualified professionals. Our experts will guide you through the estate administration process and attend to all necessary legal and administrative formalities on your behalf, allowing you to focus on honouring and celebrating a life well lived.

WHAT TO DO WHEN A LOVED ONE PASSES AWAY?

DECEASED ESTATES

Understanding the difference; Letters of Authority vs Letters of Executorship

Letters of Executorship

Main Features:

Duties of the Executor:

Letters of Authority

Main Features:

Duties of the Representative:

When Responsibility Ends (Both Executor and Representative)

The duties come to an end when:

For executors specifically:

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