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The Executor’s Estate Bank Account: What It Is and How It Works
Quick Answer Every deceased estate needs a separate estate bank account opened by the executor with the letters of executorship. All assets are collected into it, debts and fees are paid from it, and the balance is distributed to heirs after the J187 account is advertised and confirmed. Image: Wikimedia Commons contributor, via Wikimedia Commons Why the Estate Needs Its Own Account From the moment of death, the deceased’s money belongs to the estate — not to the family. The executor must open a separate estate bank account to collect assets, pay debts and eventually distribute to heirs. Mixing estate money with personal accounts is the fastest way to land…
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How to Transfer Property From a Deceased Estate
Quick Answer A house only transfers out of a deceased estate after the executor is appointed, debts are settled and the liquidation and distribution account is approved and advertised for 21 days — then a conveyancer lodges transfer at the Deeds Office. Inherited property is exempt from transfer duty. Image: The original uploader was Brian0918 at English Wikipedia., via Wikimedia Commons, Public domain Why a House Cannot Transfer Immediately When the owner of a property dies, the house forms part of the deceased estate. Legally it is frozen until the Master appoints an executor, debts are settled, and the liquidation and distribution account has been approved, advertised for 21 days…
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Insolvent Deceased Estates: Section 34 of the Administration of Estates Act
Quick Answer An insolvent deceased estate — where debts exceed assets — moves out of ordinary administration under Section 34 and into sequestration, with a trustee replacing the executor and creditors paid from asset sales. Heirs never personally inherit the debt. Image: Wikimedia Commons contributor, via Wikimedia Commons When a Deceased Estate Is Insolvent An estate is insolvent when its debts exceed its assets — mortgage shortfalls, credit agreements and medical bills can quickly outweigh what the deceased owned. Under Section 34 of the Administration of Estates Act 66 of 1965, where it appears the estate is insolvent the ordinary administration stops and the estate moves into the insolvency framework.…
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Executor’s Fees in South Africa: The 3.5% Rule and VAT
Quick Answer Executor’s fees in South Africa are capped at 3.5% of the gross estate value plus 15% VAT — a legal maximum, not a fixed tariff. The fee must appear in the advertised liquidation and distribution account where heirs can inspect it. Image: Wikimedia Commons contributor, via Wikimedia Commons The 3.5% Maximum The Administration of Estates Act caps executor’s remuneration at 3.5% of the gross value of the estate. On top of that, VAT of 15% applies where the executor is registered (or must register) for VAT — a maximum effective rate of about 4%. The fee is charged on the gross value, before debts are deducted, so it…
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Dying Without a Will: Intestate Succession in South Africa
Quick Answer When someone dies without a will, the Intestate Succession Act 81 of 1987 shares the estate: normally the surviving spouse and children first, then parents, siblings and wider relatives. The Master’s process — and the J193/J187 adverts — still apply. Image: William Shakespeare and unknown scribe, via Wikimedia Commons, Public domain What “Intestate” Means A person dies intestate when there is no valid will (or the will does not deal with all the assets). In that case the Intestate Succession Act 81 of 1987 decides who inherits — not the family, not the Master, and not the government (unless no heirs can be found at all). The Basic…
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J187 Notice: Liquidation and Distribution Account Explained
Quick Answer The liquidation and distribution account is the full financial statement of a deceased estate. Under Section 35(5) of the Administration of Estates Act, the executor advertises it on the J187 form so that the account lies open for public inspection for 21 days before anyone is paid. What the Liquidation and Distribution Account Is The account is the moment of truth in every estate. Prepared by the executor after the J193 notice to creditors has run its 30 days and the debts are known, it sets out every asset the deceased owned, every liability, the costs of administration, and exactly how the remaining balance is divided between the…