So many people have lost family members due to the current Covid-19 pandemic and understanding the process of administering the estate of your loved one when they pass away, has become quite significant.
Trying to get through the administration process of the estate of your loved one while you are grieving can be difficult and complicated and the process can seem overwhelming and tedious at the same time. This is mainly because these are so many documents required, steps to follow and state departments to deal with. It is therefore best to get a professional to assist you with the expertise required to complete the administration process associated with a deceased estate.
The Administration process of a deceased estate is set out in the Administration of Estates Act, 66 of 1965. The important steps to remember in this process include the following:
The estate of your loved one needs to be registered with the Master’s office of the High Court within 14 days from the date of death, in the jurisdiction where the deceased was living in the last 12 months of their lives.
The deceased estate will be made up of all possessions of the deceased, which include properties, vehicles, bank accounts, furniture, and policies, to name a few.
It is imperative to keep in mind that all debts of the deceased do not die with the deceased and these still need to be paid up from the estate after death. While we are still alive, we should therefore make sure that there is enough cash liquidity in our estate to cover all liabilities, debt and costs involved in winding up our estates.
Having a valid will in place would ensure that an executor, who will manage the affairs of the estate, is nominated. I hope you managed to take advantage of National Wills week last week and have your will drafted.
Should the deceased not have a valid will in place the estate will be administered by the State in terms of the Intestate Succession Act 81 of 1987.
Once the estate has been registered, the Master will either issue out Letters of Authority, if the value of the Estate is less than R250,000-00 or Letters of Executorship, if the value of the estate exceeds R250,000-00.
The letters of Executorship grant the executor the authority to manage and wind up the estate. The executor at this stage can notify all third parties of the passing of the deceased, open an estate late bank account, and determine the assets and liabilities of the deceased amongst other duties.
Estates that have a value of less than R250,000-00 are administered in terms of section 18(3) of the Administration of Estates Act, 66 of 1965, which is a simpler and quicker process.
The process of administering estates that have a value exceeding R250,000-00 gets more complex as a Liquidation and Distribution Account (L&D Account) needs to be drafted and must also be advertised in a local newspaper and in the Government Gazette. Income tax returns need to be submitted to the South African Revenue Services and Estate Duty and Capital Gains Tax need to be paid, if applicable.
Only once all the steps have been followed can the balance of the estate be distributed to the beneficiaries and heirs of the estate.
The process of winding up a deceased estate is lengthy and complicated. BKJM Attorneys can assist you with the process of administering the estate of your loved one.
Give us a call, send us a Whatsapp, or send us email and we will kick-start the process for you.
W: www.bkjmattorneys.co.za
E: khumi@bkjmattorneys.co.za
T: +27 60 628 6294
Comments