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ADMINISTRATION OF DECEASED ESTATE

“In this world nothing can be said to be certain, except death and taxes.”

ALK administers and winds-up deceased estates:

  • where ALK has been appointed as Executor;
  • where a family member or friend is the Executor and ALK acts on their behalf; or
  • where a person dies intestate (where there is no Will is in place).

In short, the administration of a deceased estate, consists of the following:

REPORTING AN ESTATE

The Estate of a deceased must be reported with the Master of the High Court and a Letter of Executorship obtained.

RECEIPT OF LETTER OF EXECUTORSHIP

The Master issues a Letters of Executorship, where after the Executor must take the following steps:

  • Place advertisements for debtors and creditors
  • Register the death of the deceased with SARS
  • Open estate late bank account
  • Obtain valuation of all assets
  • Receive claims from creditors

DRAFT LIQUIDATION & DISTRIBUTION ACCOUNT (L&D Account)

Once the Executor has accumelated all the information, a L&D Account must be drafted and lodged with the Master of the High Court, which sets out the following:

  • All assets in estate;
  • Administration costs;
  • Liabilities;
  • Income & Expenses after death;
  • How estate is distributed;
  • Is Estate Duty (Tax) payable.

Capital Gains Tax is also calculated and is included in the Income Tax assessment.

L&D Account is advertised and must lie for inspection for a period of 21 days.

AFTER ADVERTISEMENT OF L&D ACCOUNT

Once the L&D Account has lain for inspection and no objections were lodged, the assets are distributed to the heirs, which includes transfer of properties etc.
The final requirements are lodged with the Master in order to note the finalisation of the estate whereafter the Executor may request for the release of his duties.