What you need to know about being an executor of an estate

The executor’s job is to step into the shoes of the deceased and ensure that assets are distributed according to the will, or, in the absence of one, in line with the laws of intestacy. It’s a role that requires knowledge, attention to detail, and the ability to navigate a highly regulated process at what is often a difficult time for family members. Here’s what the job entails:

Appointing the right person: If you have a will, your nominated executor will need to apply to the Master’s Office for a Letter of Executorship. In the absence of a Will, the Master will appoint an executor dative to administer the estate under the laws of intestate succession. While many people nominate a spouse or family member, the administrative burden can be overwhelming - especially during a period of grief. As such, appointing an independent, experienced professional who can remain impartial is often the wiser choice.

Factors that delay the process: The time taken to wind up an estate depends on its size, structure, and complexity. Delays can occur where the death was due to unnatural causes, where the will is contested, where liquidity is insufficient, or where claims are lodged by a surviving spouse or children. Additional delays can result from backlogs at the Master’s Office, SARS, financial institutions, or where heirs live abroad. With this in mind, our advice is always to ensure that your loved ones have access to funds to tide them through the administration process.

First steps for the executor: The executor’s initial responsibility is to meet with the family to gather the information needed to report the estate to the Master’s Office within 14 days of death. Practically, this means that a death notice must be submitted to the Master in the jurisdiction where the deceased lived during the 12 months before death, together with:

• A rough inventory of assets
• A copy of the will (if applicable)
• An application for a Letter of Executorship

Once satisfied with the nominee’s credentials, the Master will issue the Letter of Executorship, giving the executor authority to act, such as opening estate bank accounts, advertising for creditors, paying debts, and selling or transferring assets. Keep in mind that the appointment process can take up to three months, and delays here can frustrate heirs who do not have access to funds during this period.

Notifying creditors and debtors: The executor must open an estate late bank account and place a Section 29 advertisement in the local newspaper and the Government Gazette simultaneously. This notice invites creditors and debtors to lodge claims against the deceased estate within 30 days.

Preparing the Liquidation and Distribution Account: After the claims period, the executor prepares the Liquidation and Distribution Account (L&D Account), which details all assets, liabilities, and how the estate will be distributed. If there is a valid Will, the executor will follow the instructions contained therein – whereas in the absence of a Will, the executor will distribute the estate in accordance with the Intestate Succession Act. Problems can arise where there is insufficient liquidity in the estate, particularly where no provision is made for the maintenance of a surviving spouse, minor children, or an ex-spouse with a maintenance claim. Remember, if the estate’s liabilities exceed the available cash, the executor may need to realise assets in order to meet its debts or to pay heirs.

Lodging the account with the Master: Following this, the executor must lodge the L&D Account with the Master, where it must lie for inspection for 15 days to allow for queries. During this process, any issues are raised on a query sheet, and the executor must respond. If no objections are received, the Master authorises the account for public inspection.

Advertising and inspection: After the period of inspection, the executor must then place a Section 35 advertisement in the local newspaper and Government Gazette, allowing the account to lie open for inspection at the Magistrate’s Court for 21 days. If no objections are lodged, a ‘certificate of no objection’ is issued, which must be lodged with the Master before the executor can distribute assets.

Distributing the assets: With the Master’s approval, the executor can now begin distribution. This process may involve transferring immovable property to heirs, paying out proceeds from asset sales, or remitting inheritances to heirs living overseas, subject to Sars approval. The executor must provide the Master with proof that the estate was wound up in accordance with the Will, including receipts from creditors and evidence of property transfers. Once satisfied, the Master issues a filing slip, and the estate is formally closed.

As is evident from the above, executorship is a specialised function that often requires in-person attendance at the Master’s Office, close attention to legal detail, and the ability to manage multiple stakeholders. For this reason, it is often advisable to nominate a fiduciary professional who specialises in estate administration. However, think carefully before nominating a large bank or corporation, as bureaucracy and inflexible procedures can frustrate heirs and delay the process.

The role of executor is far more than an administrative formality, it’s a legal responsibility requiring skill, impartiality, and persistence. By appointing someone with the right expertise and understanding the process, you can help ensure that your estate is wound up efficiently and in accordance with your wishes, sparing your loved ones unnecessary delays and distress.

* Tapfuma is a Certified Financial Planner professional at Crue Invest.

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