- REPORTING AN ESTATE
The Estate of a deceased must be reported with the Master of the High Court, by completing and submitting the prescripbed documents together will all necessary supporting documents.
- RECEIPT OF LETTER OF EXECUTORSHIP
The Master issues a Letter of Executorship authorising the Executor to administer the estate. The Executor must take the following steps once the Letter of Executorship has been received:
- Place advertisements in terms of Section 29 of Act 66 of 1965 for debtors and creditors;
- Submit all outstanding tax returns to the South African Revenue Services (SARS) and obtain Tax Assessment from SARS;
- Open estate late bank account;
- Obtain valuation of all assets;
- Contact financial institutions, debtors and creditors.
- DRAFT LIQUIDATION & DISTRIBUTION ACCOUNT (L & D Account)
Within 6 months (or a period as determined by the Master) from date of Letters of Executorship, the Executor must lodge a L & D account with the Master. This L & D Account sets out the following:
- All assets in estate;
- Administration costs;
- Income & Expenses after death;
- How estate is distributed;
- Is Estate Duty (Tax) payable.
Capital Gains Tax is also calculated on assets i.t.o. Capital Gains Tax Act and is included in the Income Tax assessment.
L & D Account is advertised in terms of Section 35 of Act 66 of 1965 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 against the account, 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.
Kindly note that the above is only a guideline and that the Master may use his discression by requesting for further documents. Take further note that the information required for the completion of the documents will be given to you and that only in exceptional cases will we not be able to be of assistance.