The administration of deceased estates is a technical and often an arduous process which is best handled by skilled legal practitioners who are trained in the processes. Should you be nominated as an executor of a deceased estate you will be in correspondence with legal experts in the administration of the estate. It is useful however to bear some of the following considerations in mind to help streamline the process.
Firstly, should the deceased estate be valued at R 250 000 or less, a Master’s representative is appointed in terms of Section 18(3) of the Administration of Estates Act 66 of 1965. This person can be nominated by the heirs if there is no Will or it can be the Executor of the Estate, who will also need to obtain clearance from the South African Revenue Services (SARS) and complete all outstanding returns to SARS in the case of solvent estates.
In the case of insolvent estates, the executor who has been nominated as such is to ensure creditors of the estate are paid, ensure a cash recapitulation statement is prepared whereby the estate’s estate duty, liabilities and cash legacies are deducted from the total cash in the estate. The executor is to provide the Master with proof of such steps.
Should the estate be valued at R 3.6 million or more, the Master’s Fee will be R 7 000.00. This is the new position as of 1 January 2018. It is recommended that a residue heir is appointed in a Will – such person or persons will inherit the residue of the estate. Should no such person be named, the estate will devolve according to intestate succession laws.
In so far as costs and liabilities are concerned, the current Section 29 (and Section 35) advertisement costs under administrative expenses are set at R 37.82, postages and petty costs are R 260, the executor’s remuneration at 3.5% of the gross value of the estate’s assets where 15% is also added should the executor be registered as a vat vendor.
If you need any assistance, do not hesitate to contact us to assist you.