What happens after someone dies in South Africa? The Master’s view

When someone dies, their assets do not immediately pass to the family. A deceased estate comes into existence and must be reported, administered and distributed through a regulated process.

The executor or Master’s representative must establish what the deceased owned and owed, settle valid obligations and transfer the remaining estate to the lawful beneficiaries.

Why the process matters

Families are often ready to deal with the will but unaware of and unprepared for the process and requirements surrounding it.

Banking access may become restricted, debit orders may continue, dependants may need financial support and property must still be protected. At the same time, a spouse, child or nominated executor may not simply take control of the estate by virtue of their relationship or title.

The documents, authority and sequence of events matter.

The funeral and death certificate

Following the burial, the family will obtain the death certificate and notice of death from Home Affairs. Most undertakers in South Africa will assist the family in obtaining these documents.

The estate is reported and authority is obtained

A deceased estate should generally be reported to the Master of the High Court within 14 days. The reporting documents ordinarily include the death certificate, original will, marriage information, inventory of assets and documents relating to the proposed executor or representative.

The Master considers the will and appoints the person nominated and authorised to administer the estate.

Where an estate exceeds R250,000, the Master will issue Letters of Executorship and the full administration process applies. Estates smaller than R250,000 may qualify for a simplified appointment under section 18(3) of the Administration of Estates Act, commonly referred to as a Letter of Authority.

Being nominated in a will does not, by itself, authorise someone to act as executor. Formal authority must first be issued by the Master.

The estate is identified and administered

Once appointed, the executor begins establishing the complete financial position of the estate. This may involve:

• Locating and valuing assets.
• Identifying creditors and outstanding liabilities.
• Advertising for claims.
• Securing property and important documents.
• Closing or managing accounts where appropriate.
• Collecting money due to the deceased.
• Reconciling trusts, companies and loan accounts.
• Completing outstanding tax returns.
• Determining income tax, capital gains tax and estate-duty consequences.
• Considering maintenance and liquidity requirements.

The executor must distinguish between assets belonging to the deceased, jointly held property, trust assets, company assets and benefits dealt with under separate legislation or beneficiary nominations.

This is where an accurate will, deceased file and properly maintained documents and records become extremely valuable.

The executor is also required to advertise the estate for a period of 30 days before the Liquidation and Distribution Account can be submitted for approval.

The account is approved and the estate is distributed

For an estate following the full administration process, the executor prepares a Liquidation and Distribution Account. This account records:

• The assets and how they were dealt with.
• Liabilities and administration expenses.
• Tax and estate-duty consequences.
• Cash available in the estate.
• The inheritance due to each beneficiary.
• Property or other assets to be transferred.

The account is examined by the Master and must ordinarily lie open for public inspection for a period of 21 days. Objections must be considered and resolved before distribution can proceed.

Only once the necessary requirements have been completed will the Master authorise the executor to pay inheritances, transfer assets and finalise the estate.

Questions every family should ask

• Where is the original signed will?
• Who has been nominated as executor?
• Is there an up-to-date deceased file?
• Can all assets, debts and policies be identified?
• Is there enough cash to pay expenses and tax?
• Are trusts, companies and loan accounts properly documented?
• Will any dependant require immediate financial assistance?
• Do beneficiary nominations agree with the broader estate plan?

The Ilifa perspective

Estate administration starts long before death.

A valid will provides direction. A deceased file provides guidance and information. Clear records provide clarity and evidence. Available cash provides the means to carry out the plan.

When these elements work together, the executor can act with greater certainty and the family is less likely to face avoidable delay, conflict and financial pressure.

Begin a considered conversation

A review of your will, records, ownership structures and estate liquidity can identify problems while they can still be corrected.