With the proper information regarding the law and the right attorneys, you can settle a deceased estate more seamlessly. Section 18(3) of Administration of Estates Act, 66 of 1965 states, ““If the value of an estate does not exceed the amount determined by the Minister by notice in the Gazette, the Master may dispense with the appointment of an executor and give directions as to the manner in which any such estate shall be liquidated and distributed.” That value is currently R250 000. Blake Attorneys, a leading boutique law firm in South Africa, explains further.
Deceased estates: section 18(3)
When a person passes away, their estate is frozen. If the deceased was married in community of property, though, the joint estate also gets frozen. The administration of a deceased estate requires that nobody uses or withdraws funds from the Estate without getting official permission from the Master of the High Court.
In the event of death, the Estate must be reported to the Master of the High Court which is closest to the residence of the deceased in the 12 months prior to death. However, if the person passes away outside the Republic of South Africa, the Estate can be reported to any Master of the High Court in the country.
Section 18(3) estates vs full estates
The two main types of deceased estates in South Africa are estates administered in terms of section 18(3) and full estates.
The administration of these estates is determined by its gross value. If the value of an estate is R250,000 or less, it will be considered a section 18(3) estate. However, if the value is more than R250,000, it is a full estate.
In a section 18(3) estate the master or an administrator in the magistrate’s court gives a family member a letter authorising the family member to close banking accounts and pay the money over to the heirs.
A full estate is usually a lengthier estate to administer. In this type of estate, the Master of High Court issues a Letter of Executorship for the liquidation and distribution of the estate. Once the letter is received, an estate account is opened and a section 29 ad is placed in the Government Gazette as well as newspapers. This provides debtors and creditors a period of 30 days to make any claims against the estate. After that 30 day period the Executor or their agent (usually an attorney) must collect all monies owing to the deceased and pay all the Estate’s debts, as well as distribute all the assets in the Estate to the persons entitled to them, in terms of a Liquidation and Distribution account which the agent must draft.
For more information on how to process a section 18(3) deceased estate in South Africa, contact Blake Attorneys today!