The administration of deceased estates is the process of winding up the affairs/estate of the deceased and ensuring that his testamentary directions are carried out. You will also study the functions of the Master and the Executor of the deceased estate, in the winding up process.
LAW OF SUCCESSION
Learning Unit 6: The Administration of Deceased Estates
Theme 1: Introduction
LO1: Define deceased estate;
LO2: Identify the legislation regulating the administration of deceased estates;
LO3: Identify the three stages of the administration process.
The process of administration commences upon the death of the deceased (testate or
intestate). The estate of the deceased (assets and liabilities) has to be liquidated and
distributed. The administration of an estate may be described as the process by which the
deceased person’s liabilities are settled and the remainder (assets that can be distributed) is
awarded and transferred to the beneficiaries.
The administration process is conducted according to certain legal directives. The person
who administers the estate is the executor. The executor may be assisted by an agent of co-
executors. The person who actually administers the estate is then called the administrator of
the estate. He/she does this under the supervision of the Master of the High Court.
The Administration of Estates Act and the regulations issued in terms of this Act regulate
various aspects of the administration process. These include the functions of the Master,
reporting the estate, appointment and duties of the executor, and the drawing up of
liquidation and distribution account.
Other important legislation includes:
- The Wills Act;
- The Estate Duty Act;
- The Immovable Property (Removal or Modifications of Restrictions) Act;
- The Subdivision of Agricultural Land Act (which is probably going to be repealed);
- The Intestate Succession Act; the Trust Property Control Act;
- The Matrimonial Property Act;
- The Maintenance of Surviving Spouses Act and the Children’s Act.
Legislation on marriages and their patrimonial consequences also play an important role in
the administration process. Such legislation includes the Marriage Act; the Matrimonial
Property Act; the Recognition of Customary Marriages Act and the Civil Union Act.
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, The administration process has three stages:
a) Certain actions must be undertaken almost immediately upon the death of the
deceased.
b) As soon as the executor has been appointed, the actual process of administration
commences with a view to submitting an account to the Master.
c) After finalisation and approval of the account, there are certain final requirements that
have to be satisfied.
Theme 2: The Master of the High Court and the Executor
LO4: Discuss the Master’s functions in the administration of deceased estates;
LO5: Discuss the functions and activities of the executor in the administration of
deceased estates;
LO6: Apply the formulae to calculate the executor’s remuneration
The master:
- The Minister appoints a Master for the area of jurisdiction of each provincial division
of the High Court.
- The executor in turn is appointed by the Master.
- The Master’s office consists of the Master, deputy and assistant Masters as well as
trained staff who supervise the administration process in the role of examiners.
- The Minister may designate service points within a Master’s areas of jurisdiction.
- All magistrates’ offices have been designated as such service points where the
appointed official exercises limited powers.
The Master’s functions however, extend beyond mere supervision of the process.
The Master’s office performs quasi-judicial, advisory and administrative functions as well.
The Master also has a discretionary function.
- The Master can, for example, decide that an estate that has value of not more than
R250 000 may be finalised in terms of section 18(3).
This is a shortened procedure according to which the person charged with the duties takes
over the assets, pays the debts and awards the beneficiaries their respective portions of the
estate. The Master’s decisions are subject to review by the court. The Master is entitled to
Master’s fees, which are indicated as a liability in the administration column of the account.
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