Estate administration is the formal process of collecting, accounting for, and distributing your assets after death. It is often lengthy, administratively intensive, and can be emotionally draining for your loved ones. The efficiency of the process depends largely on how well your affairs are organised, the clarity of your Will, and the skill of your executor. Below we address the most common—and most important—questions about estate administration.
Who is responsible for reporting my death, and where must it be reported?
Your death must be reported to the Master of the High Court within 14 days. If you have a surviving spouse, they will usually report it – if not, the person in possession of your Will, or anyone in control of your property, may do so. The estate must generally be reported to the Master’s Office in the jurisdiction where you lived for the 12 months prior to your passing. However, if you lived outside South Africa, your death can be reported to any Master’s Office in the country.
Does my nominated executor automatically get appointed?
Not necessarily. The person you nominate in your Will must apply to the Master of the High Court to be formally appointed. If satisfied with their suitability, the Master will issue Letters of Executorship, giving them the legal authority to administer your estate. On the other hand, if the Master believes the person lacks the necessary knowledge or expertise, they may insist that a professional agent (such as a fiduciary practitioner or attorney) assist.
What happens if I don’t nominate an executor?
If you die without a valid Will or fail to nominate an executor, the Master will appoint a competent person—known as an executor dative. In this regard, note that preference is usually given to a surviving spouse or their representative – although, if family members disagree about who should act, the Master may step in to appoint an appropriate professional.
How long does it take to wind up an estate?
A straightforward estate can take 6–12 months to finalise, while complex estates can take several years. Factors influencing the timeline include the completeness of your records, the clarity of your Will, and whether there are any disputes among heirs. To minimise delays, our advice is to ensure your Will is valid, up to date, and stored safely, and maintain an organised file of your key documents.
What documents will my executor need?
Your executor will require full information about you, your assets, and your liabilities. Typical documents include:
- Original Will
- Death certificate (at least 20 certified copies)
- ID document
- Marriage certificate/antenuptial contract
- Divorce orders or settlement agreements
- Birth certificates and IDs of dependants
- Tax number and recent returns
- Pension and retirement fund details
- Title deeds for property
- Bank details and statements
- Policy schedules
- Recent municipal accounts
- Vehicle registrations
- Firearm licences (if applicable)
- Medical aid membership details
Can I appoint more than one executor?
Yes. You may appoint co-executors who share the duties—and the executor’s fee. However, having multiple executors can create administrative bottlenecks in that any disagreements amongst the executors must be referred to the Master for resolution. Further, all executors are required to meet the FICA requirements, which can cause delays, especially if some live overseas or out of town.
Can I nominate a family member as my executor?
Yes, provided they are over 18 and not a witness to your Will, although keep in mind that you cannot nominate someone who is insolvent or mentally incapacitated. While appointing a spouse or child may seem natural, it is often advisable to nominate a professional fiduciary practitioner who has the expertise to navigate the technical and administrative requirements.
Who pays the executor, and how much is charged?
Executor’s fees are paid from your deceased estate, with the tariffs allowing executors to charge up to 3.5% (plus VAT) of the gross value of assets and 6% on any income earned after death. A professional executor may negotiate a reduced fee depending on the size and complexity of the estate. Importantly, it is advisable to understand upfront which assets fall inside your estate and are subject to fees.
Will my bank accounts be frozen after my death?
Yes. Once the bank is notified of your death, all accounts in your name will be frozen until an executor is appointed. This can create cashflow difficulties for a surviving spouse, especially if married in community of property. Some banks will allow limited access to funds for urgent expenses (such as funeral costs) once supporting documents are provided, but the rules differ from bank to bank, so be sure to plan accordingly and ensure your loved ones have access to their own funds.
Which assets fall outside my estate?
It’s important from an estate planning perspective to know that the following assets fall outside of your estate:
- Retirement funds: Retirement fund death benefits are distributed by the retirement fund trustees under Section 37C of the Pension Funds Act, and not in terms of your Will
- Living annuities: Where you have nominated beneficiaries to your living annuity, the funds – to the extent that they were made with tax-deductible premiums – fall outside of your estate.
- Business assurance policies: Correctly structured domestic buy-and-sell or key person policies usually bypass the estate.
- Certain trust assets: Property owned by a properly constituted trust will not fall into your estate.
Who pays for my funeral and related costs?
Funeral, cremation, and burial costs are paid from your deceased estate. In this regard, Section 4(a) of the Estate Duty Act specifically allows these expenses—including the funeral, tombstone, deathbed medical costs, and death notices—to be deducted from your estate before estate duty is calculated.
Can debts delay the winding up of my estate?
Yes. If your estate is insolvent or has significant outstanding debts (such as home loans or tax liabilities), your executor must first settle these before heirs can inherit. It’s important to note that creditors have a legal right to lodge claims, and any unresolved debt disputes can significantly delay the process.
Can I do anything now to make the process easier for my family?
Absolutely. The best way to ease the burden is to:
- Draft a valid, up-to-date Will.
- Keep a central file of all important documents.
- Ensure your beneficiaries and executor know where your Will is kept.
- Review your estate plan regularly to ensure liquidity for executor’s fees, taxes, and debts.
- Consider nominating a professional fiduciary as executor to avoid disputes or administrative hurdles.
While estate administration can appear daunting, keep in mind that much of the complexity can be reduced through proactive planning. By ensuring that your Will is valid, your documents are well organised, and your executor is properly briefed, you can spare your loved ones unnecessary administrative stress and delays. Ultimately, good estate planning is a final act of care that provides clarity, dignity, and peace of mind for those you leave behind.
Have a super day.
Sue
