Every person has an estate that consists of the assets and liabilities that have accrued to a person during his/her lifetime. When a person dies, his/her estate must be wound-up and the assets must be distributed to the heirs of that person. The Administration of Estates Act Number 66 of 1965 (the “Estates Act”) governs the process of winding-up an estate.

The Estates Act sets out the procedure for winding-up an estate. The first step is for a relative, usually the spouse or a major child of the deceased, to be appointed as an executor. This would include submitting nomination papers, a next-of-kin affidavit and an inventory notice. We would be able to assist you with all of these documents and the filing thereof.

If the nomination is accepted by the Master of the High Court (the “Master”), the Master will issue a Letter of Executorship appointing the nominated person as executor of the estate. The executor can then mandate Kirith Haria Attorneys to act as his/her agent to attend to the winding-up of an estate. In doing so, we would attend to inter alia:

• the notice to creditors to submit their claims to our offices;
• liaising between the creditors, debtors, Master of the High Court, valuators, trustees, conveyancing attorneys, the South African Revenue Service (“SARS”); banks, and the executor;
• open an estate late bank account;
• obtain any outstanding money from debtors of the deceased;
• complete a liquidation and distribution account;
• complete the necessary SARS’ forms;
• attend to the relevant queries (if any) by the Master;
• advertise the estate for inspection;
• pay the creditors;
• transfer ownership of any immovable property to the heirs;
• transfer the assets to the heirs; and
• obtain a letter of clearance from the Master discharging the executor from his/her duties.  

The primary function of the executor is to complete a liquidation and distribution account for submission to the Master. The liquidation and distribution account entails collating the assets and liabilities of the deceased to derive at the solvency of the estate and the amounts to be distributed to the heirs. This also includes completing the estate duty which is a tax imposed on the deceased’s estate in terms of the Estate Duty Act Number 45 of 1955. Estate Duty depends on the nature of the estate which is determined by the lifestyle of the deceased (for example his/her marital status). The liquidation and distribution account is a comprehensive document ensuring that every asset has been valued and a corresponding voucher has been attached.

Furthermore, the liquidation and distribution account would also state to whom the assets would be distributed. This would depend on the manner in which the deceased sought to distribute his/her assets. If the deceased penned a valid will (testate succession), the executor would be bound to distribute the assets according to the provisions of the will; or if the deceased did not leave a valid will then the estate would be wound-up in accordance with the provisions of the Intestate Succession Act Number 81 of 1987.

Once the liquidation and distribution account has been accepted and the formalities complied with, the Master will issue a letter to the executor to pay the creditors and to distribute the assets to the heirs of the estate. Thereafter, the Master will issue a letter to the executor discharging him/her of the duties of the executor.

Written by Kirith Haria, director, KH Attorneys