Deceased Estate Administration South Africa
Bizztax Accountants assists families with the administration of deceased estates in accordance with the Administration of Estates Act 66 of 1965, guiding executors and heirs through the process from reporting to distribution.
What is deceased estate administration?
Deceased estate administration is the legal process of winding up a person's estate after death. In South Africa, this process is governed by the Administration of Estates Act 66 of 1965 and is overseen by the Master of the High Court. The process involves reporting the estate, obtaining letters of executorship, identifying and valuing assets, settling debts and taxes, and distributing the estate to heirs and legatees in accordance with the will or the Intestate Succession Act.
Who needs deceased estate administration?
Every deceased estate in South Africa must be reported to the Master of the High Court. If the gross value of the estate exceeds R250 000, a formal executor must be appointed. Even smaller estates require a formal process. Families who have lost a loved one often find the administration process complex and time-consuming — Bizztax guides executors and families through every step.
The Administration Process
Report the estate to the Master
The death must be reported to the Master of the High Court within 14 days. We prepare and submit the death notice, inventory of assets and liabilities, and the original will (if any) to the Master.
Obtain letters of executorship
The Master appoints the executor and issues letters of executorship. We assist the nominated executor with the application and ensure all requirements are met, including the provision of security where required.
Identify and value assets
We identify all assets of the deceased, including immovable property, bank accounts, investments, business interests and personal effects. We obtain valuations where required and prepare a complete inventory.
Settle debts and taxes
We settle all outstanding debts of the deceased, including the final income tax return, estate duty, capital gains tax and any other liabilities. We liaise with SARS on behalf of the estate.
Prepare the liquidation and distribution account
We prepare the liquidation and distribution account, which sets out all assets, liabilities, costs and the proposed distribution to heirs. This account is lodged with the Master and advertised for inspection.
Distribute the estate
Once the Master approves the account, we distribute the estate to heirs and legatees in accordance with the will or the Intestate Succession Act, and obtain receipts from all beneficiaries.
Frequently Asked Questions
Common questions about deceased estate administration in South Africa.
How long does it take to wind up a deceased estate in South Africa?
The administration of a deceased estate typically takes 12 to 24 months. Simple estates with few assets and no disputes can be finalised more quickly. Complex estates with immovable property, business interests, offshore assets or disputes among heirs can take significantly longer.
What is the role of the Master of the High Court in deceased estate administration?
The Master of the High Court supervises the administration of all deceased estates in South Africa. The Master appoints the executor, reviews the liquidation and distribution account, and ensures the estate is administered in accordance with the law. The Master's office is located in each provincial division of the High Court.
What is estate duty and how is it calculated?
Estate duty is a tax on the dutiable value of a deceased estate. The dutiable value is the gross value of the estate less allowable deductions (debts, funeral costs, bequests to a surviving spouse and charitable bequests). The first R3.5 million is exempt (the abatement). Estate duty is 20% on the first R30 million above the abatement and 25% on amounts above R30 million.
Can I administer a deceased estate myself?
The nominated executor can administer the estate themselves, but the process is complex and time-consuming. Errors can result in personal liability for the executor. Most executors appoint a professional to assist with the administration. Bizztax guides executors through every step of the process.
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Get assistance with deceased estate administration
Contact Bizztax Accountants for professional assistance with deceased estate administration across South Africa.