A deceased estate comes into existence when a person dies and leaves behind assets such as property, investments or money in the bank.
1) What happens when there is no will?
If a person dies without a Last Will and Testament, his/her deceased estate (the assets she/he owned at time of death) will be distributed in terms of the Intestate Succession Act.
Testate Succession Act– When a person dies with a Will.
Intestate Succession Act– When a person dies without a Will.
Requirements of a valid Will:
- The person must be over the age of 16
- The will must be a written document (typed or handwritten)
- Each page of the will (including the last page) must be signed by the testator/testatrix and it must be signed by two competent witnesses (14 years old and older).
- If the will is signed on behalf of the testator/testatrix, a Commissioner of Oaths must be present when the will is signed.
- It is very important to have at least three originally signed wills.
2) When must the estate of the deceased person be reported?
Within fourteen days of the date of death to the Master of the High Court by lodging a completed death notice. It is the responsibility of the person who has been appointed as the executor of the estate to report the death to SARS, pay any tax or capital gains tax and calculate any estate duty owing. The executor’s fees are currently calculated at 3,5% of the estate’s assets excluding VAT. If there are any tax refunds due to the deceased, the executor needs to open a new bank account under the name of the estate which SARS will use to pay the refund into. SARS will not pay refunds into the deceased original bank account.
3) What is included in a deceased estate?
An estate is the economic valuation of all the investments, assets, and interests of an individual. The estate includes a person’s belongings, physical and intangible assets, land and real estate, investments, collectibles and furnishings.
4) What is excluded in a deceased estate?
A death benefit paid from a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund does not form part of a deceased estate.
5) How long does it take for the deceased estate to be finalised?
Proof must be provided to the Master that all creditors have been paid, that the heirs have received their inheritances and that the fixed property has been transferred, then the estate is regarded as finalised and the executor’s duties come to an end. The process can take between 4-8 weeks.