Serving as an executor of a deceased estate in South Africa is a significant responsibility. If you have been appointed as an executor and have no legal background, the process may seem daunting. However, by following the prescribed steps and seeking professional assistance where necessary, you can effectively manage the administration of the estate.
What is an Executor?
An executor is a person nominated in a will (or appointed by the Master of the High Court if no will exists) to administer a deceased person’s estate. Their primary role is to ensure that all debts are settled, assets are distributed to the rightful heirs, and all legal formalities are observed.
Step 1: Reporting the Estate to the Master of the High Court
The first step in estate administration is reporting the estate to the Master of the High Court in the jurisdiction where the deceased lived. This must be done within 14 days of the person’s death. The following documents must be submitted:
Death certificate
The original will (if available)
Completed J94 – Death Notice
Completed J243 – Inventory listing all assets
Nomination of Executor (J190) if applicable
Acceptance of Trust as Executor (J262)
Identity documents of the deceased and executor
If the estate is valued at R250,000 or less, a simpler process applies, and the Master may issue Letters of Authorityinstead of Letters of Executorship.
Step 2: Obtaining Letters of Executorship and Bond of Security
If the estate is valued above R250,000, the Master will issue Letters of Executorship, granting the executor legal authority to manage the estate. In cases where the executor is not an heir or is not exempted by the will, the Master may require the executor to provide a bond of security as protection against potential mismanagement of the estate. This bond is typically issued by an insurance company or financial institution and ensures that the estate is safeguarded against any potential financial loss. The executor must also open an estate bank account and may need to publish a Notice to Creditors in the Government Gazette and a local newspaper, calling on anyone with claims against the estate to come forward.
Step 3: Identifying and Managing Assets
The executor must identify, secure, and value all assets, including bank accounts, property, investments, and personal belongings. A professional valuator may be required for significant assets like real estate.
Step 4: Paying Debts and Liabilities
Before any distribution to heirs, the executor must settle all outstanding debts, including:
Funeral expenses
Taxes owed to SARS (final tax return must be filed)
Outstanding loans, medical bills, and any other valid claims
If the estate lacks sufficient funds, assets may need to be sold to cover debts.
Step 5: Preparing the Liquidation and Distribution Account
A Liquidation and Distribution (L&D) Account must be drafted, detailing all assets, liabilities, and distributions. This account must be submitted to the Master for approval and then made available for public inspection at the Magistrate’s Court for 21 days.
Step 6: Distributing the Estate
Once the Master approves the L&D Account and no objections arise, the executor may proceed with distributing the remaining assets to the beneficiaries as stipulated in the will (or according to intestate succession rules if no will exists).
Step 7: Finalising the Estate
The final step is obtaining a Master’s Certificate of Completion, confirming that all legal obligations have been met. The estate bank account can then be closed, and all records must be retained for a period of five years.
Key Considerations for Lay Executors
Seek Professional Guidance: Engaging an attorney or estate practitioner can help navigate complex issues.
Stay Organised: Keeping detailed records and meeting deadlines is crucial.
Communicate Clearly: Beneficiaries should be kept informed throughout the process.
Administering an estate is a time-consuming but manageable process with the right approach. If you are unsure at any stage, seeking legal or financial assistance is advisable to ensure the estate is administered correctly and lawfully.