Tag: Interview and reporting of the estate

This article explains the steps that are followed to administer deceased estates (solvent and insolvent).

When someone dies this is what happens in terms of administration of the estate.

Family needs to:

• Obtain death certificate
• Advise AED Attorneys of the death
• Get all relevant documents and papers of the deceased together for the first interview.

Interview and reporting of the estate.

• Nominated executor to:
• Set up an appointment with family to fill in documentation
• Establish the assets and liabilities
• Report estate to the Master of the high court
• Notify all stakeholders (banks, creditors, policies etc.)

Advertise to creditors.

• This advertisement is called a Section 29 advert
• This is where you advertise in the local papers and in the government gazette (give notice to creditors & debtors)
• Send Letters of Executorship to all stakeholders
• Establish liquidity in estate
• Only do this if there are Letters of Executorship
• The stakeholders will send you the COB as at date of death
• We start the process to transfer assets

Liquidation and distribution account.

For solvent estates

• Complete and submit all outstanding returns to SARS
• Drafting of Liquidation and Distribution account
• Place advert in Government Gazette and local newspaper
• Lay open for inspections for 21 days

For insolvent estates

• Send Section 34 notice to SARS, Master of the High Court, and other creditors
• Assets sold, draft Liquidation and Distribution account
• Send Liquidation and Distribution account to the Master for confirmation
• Once confirmation from the Master is received then we place an advert in the Government Gazette and local newspaper – 21 days

Distribution of estate.

For solvent estates

• Nominated executor to:
• Obtain clearance from SARS
• Pay creditors
• Instruct attorneys to register property in heirs name
• Prepare final cash reconciliation
• Pay heirs
• Provide Master with proof of above
• Confirm estate is finalized

For insolvent estates

• Nominated executor to:
• Send out divided letters to creditors with copy of liquidation and distribution account
• Do payments to creditors
• Prepare cash reconciliation statement
• Provide Master with proof of above
• Await confirmation that estate is finalized.