Executors File Products

Introduction

Finalising a deceased estate in South Africa is a regulated legal process overseen by the Master of the High Court. The entire process generally takes between 18 and 24 months, though simple estates may be completed in 9 to 12 months. 

1. Reporting the Estate

• Timeline: Must be reported within 14 days of death.

• Action: The family or nominated executor submits a Death Notice (Form J294), the original will, a preliminary inventory (Form J243), and the death certificate to the Master’s Office in the jurisdiction where the deceased resided. 

2. Appointment of the Executor

• Process: The Master issues Letters of Executorship (for estates over R250,000) or Letters of Authority (for estates under R250,000).

• Authority: This document grants the executor legal power to manage the deceased’s affairs, including opening an “Estate Late” bank account. 

3. Notice to Creditors

• Requirement: Under Section 29 of the Administration of Estates Act, the executor must publish a notice in the Government Gazette and a local newspaper.

• Period: Creditors have 30 days to lodge claims against the estate. 

4. Valuation and Collection of Assets 

• Inventory: The executor identifies, secures, and values all assets, including property, bank accounts, and investments.

• Liquidation: If necessary, assets are sold to cover debts or to facilitate distribution to heirs. 

5. Liquidation and Distribution (L&D) Account

• Submission: The executor must submit a formal L&D account to the Master within 6 months of appointment.

• Details: This account lists all assets, liabilities, administration costs (including the executor’s fee of up to 3.5% + VAT), and the proposed distribution to beneficiaries.

• Examination: The Master reviews the account and may issue a “query sheet” for any clarifications. 

6. Public Inspection Period

• Advertisement: Once the Master is satisfied, the executor publishes a Section 35 notice stating the L&D account is available for inspection.

• Period: The account must lie open for public inspection at the Master’s Office and local Magistrate’s Court for 21 days.

• Objections: If no objections are lodged, the Magistrate issues a Certificate of No Objection. 

7. Tax Clearance and Distribution

• SARS: The executor must settle all tax liabilities (Income Tax, Capital Gains Tax, and Estate Duty) and obtain a Deceased Estate Compliance (DEC) letter from SARS.

• Payouts: Once the inspection period passes and tax is cleared, the executor pays creditors and distributes assets to heirs.

• Receipts: Heirs must sign acquittances (proof of receipt) for their inheritance. 

8. Final Discharge

• Closure: The executor submits proof of distribution (acquittances), proof of payment to creditors, and property transfer documents to the Master.

• Filing Slip: The Master issues a J183 filing slip, which signifies the formal closure of the estate file. 

Note: This is a general overview, and processes can be different due to individual applications and circumstances