Estate Administration

At Thollon Fiduciary, we understand that estate administration can be a challenging and emotional process. That’s why our experienced team is here to provide compassionate guidance and expert support every step of the way. With our comprehensive estate administration services, we aim to alleviate the burden on our clients and ensure the smooth and efficient transfer of assets to beneficiaries.

What is Estate Administration?

Estate administration involves the legal process of managing and distributing a deceased person’s assets. This process typically includes tasks such as identifying and valuing assets, paying debts and taxes, and distributing remaining assets to heirs according to the terms of the will or applicable laws of intestacy. Thollon Fiduciary specializes in navigating these complexities with care and attention to detail.

Our Estate Administration Services

At Thollon Fiduciary, we offer a wide range of estate administration services tailored to meet the unique needs of our clients. Whether you are an executor tasked with settling a loved one’s estate or a beneficiary seeking guidance on your rights and entitlements, we are here to help.

We understand that the loss of a loved one is traumatic, and the process of winding-up their estate can be very stressful. In the unfortunate event of a loved one passing away, their estate details need to be appropriately processed to give your family peace of mind. The administration process is highly technical and usually require professional expertise to ensure that all the terms in the deceased’s Will or testament are carried out accurately, or intestate succession is adhered to in the absence of a Will.

Our team of estate administration specialists will help you through this challenging time by lessening the burden of dealing with the legal process. We attend to the deceased’s estate winding-up in accordance with the deceased’s Will or in terms of an Intestate Succession Act and all the applicable legislation. We are specialists in the administration of deceased estates.

Why use Thollon Fiduciary to administer a deceased estate?

We are specialists in the administration of deceased estates. We understand the process and the legislated framework between the Will or Intestate Succession and your assets and liabilities, and how the above are interrelated. We also work with the deceased’s heirs and business partners to identify and resolve, as soon as possible, those unintended consequences that could arise. We continually improve solutions for interactions with many institutions involved in the administration process, from SARS to the Magistrate, to the Master of the High Court and financial institutions to make the process as uncomplicated as possible. Our administrators use regular communication channels to make sure beneficiaries, creditors, debtors and other stakeholders who are part of an estate are kept fully informed of the progress. We are proud of that we have a 100% record in finalising all non-complex estates within six months. A non-complex estate is one where there are no liquidity problems all heirs are identified, are majors, the assets are local, and there are no other legal, tax or business accounting issues that will delay the matter. We continually improve solutions for interactions with many institutions involved in the administration process, from SARS to the Magistrate, to the Master of the High Court and financial institutions to make the process as uncomplicated as possible.

We can be appointed as executors or executor’s agent of the deceased estates. We are proud of the fact that we have a100% record in finalising all non-complex estates within six months.

How does the administration of an estate start?

When a person dies leaving any assets or a Will, the surviving spouse or if there is no surviving spouse the nearest relative residing in the district in which the death has taken place must report the estate in the prescribed manner to the Master of the High Court.

After the estate has been reported, the Master appoints an Executor by issuing a Letter of Executorship (if the deceased’s assets have a gross value of more than R250 000) or a Letter of Authority (if the deceased’s assets have a gross value of less than R250 000).

What happens when I die with a Will?

The best way to ensure that your assets are distributed according to your wishes and instructions after your death, is to draw up a will. This gives you the opportunity to appoint an Executor to deal with your assets. If you die without a valid will, your family might suffer inconvenience and even severe hardship.

Where an Executor is appointed, the estate will be administered as detailed in the process above.

Thollon Fiduciary can assist you with the drafting of a will in line with Will Act 7 or 1993.

What happens when die without a Will?

A person dies intestate if they die without a Will, an invalid Will or a partially valid Will. The ntestate Succession Act 81 of 1987 contains the provisions in terms which a person’s estate is to devolve if they die intestate. In such circumstances, the estate will devolve upon the surviving spouse or the surviving spouse and children of the deceased and grandchildren (where a child has predeceased the deceased leaving children). Where there are no descendants, the parents will inherit, and in their absence, the brothers and sisters will inherit. This will continue until the next of kin has been ascertained.

Vuyo dies intestate (without a Will). He was married in community of property to Akhona. They have two children. The value of the joint estate on Vuyo’s death was R1 200 000. Akhona is entitled to R600 000 as her share of the joint estate. The remaining R600 000, which forms Vuyo’s deceased estate will be divided as follows:

Child’s share = R600 000 / 3 = R200 000

As R250 000 is greater than R200 000, the surviving spouse will inherit R250 000, and the remaining R350 000 (R600 000 – R250 000) will be inherited by the two children (R175 000 each).

NB: The R250 000 apportioned to the surviving spouse is a fixed amount determined by the Minister of Justice by notice in the Gazette from time to time.

The Estate Administration Process

Step 1 – Loss of a loved one.

Step 2 – Consultation between the family and Thollon Fiduciary.

a. Assess the applicable law of succession that will govern the devolution of the estate (intestate succession, testamentary succession and contractual succession {antenuptial contract}).
b. Provide an overview of the process, timeframes and identifying the assets that will form part of the estate.
c. Collection of documentation and information.

Step 3 – The nomination of Thollon as the Executor/Agents of the estate.

Step 4 – Reporting to the Master

a. Death notice, declaration, declaration of subsisting marriage, next of kin affidavit, acceptance of executorship, nomination
b. Will (if there is one)
c. Assets inventory

Step 5 – Application for Letters of Executorship.

Step 6 – Advertisement of the estate (Section 29 creditors advertisement).

Step 7 – Opening of the deceased estate bank account.

Step 8 – Determination of the solvency of the estate (realize assets and settle debts).

Step 9 – Valuation certificates for unrealized assets.

Step 10 – Drafting of the liquidation and distribution

Step 11 – Lodgment of the liquidation and distribution with the Master for examination

Step 12 – Advertisement of the liquidation and distribution account for inspection (Section 35 advertisement).

Step 13 – Distribution

a. Payment of heirs, legatees and creditors.
b. Transfer of assets (e.g., fixed property) to beneficiaries
c. Payment of Estate Duty

Step 14 – Finalisation

a. Final clearance from SARS
b. Discharge of executor duties by the Master

Frequently Asked Questions

How do | report a deceased estate?
Contact Thollon Fiduciary to speak to one of our specialist deceased estates administrator and our passionate consultants will arrange a meeting with the family.

What costs are involved in the administration process?
When a loved one dies, there are usually costs that need to be paid from the estate funds. The typical costs that usually need to be paid from the estate funds include:

• Funeral costs
• Master’s fees payable to the Master of the High Court.
• Advertising costs
• Auction fees
• Estate bank account bank charges
• Transfer costs of fixed property to conveyancers
• Bond cancellation costs in respect of bonds registered over the fixed property in the estate
• Clearances payable to the relevant City Councils with regard to rates and taxes
• Executors fees plus VAT (if applicable)

When is estate duty payable?
Estate Duty is evied on the worldwide property and deemed property of a natural person who is ordinarily resident in South Africa and on South African property of non-residents. Various deductions under section 4 of the Estate Duty Act, 1955 are allowed to determine the estate’s net value. An abatement of R3.5 million is allowed against the estate’s net value to determine the dutiable value of the estate. The Estate Duty is levied on the dutiable value of an estate at a rate of 20% on the first R30 million and at a rate of 25% on the dutiable value of the estate above R30 million.

Does an heir have a choice?
Any beneficiary is entitled to repudiate or renounce a bequest or inheritance. Election arises when spouses have massed their estates, and the surviving spouse must elect whether to take his/her share and forego the benefits of the joint Will or allow his/her share to be disposed of and enjoy the benefits. This election by the surviving spouse is usually referred to as ‘adiation’. Where a beneficiary renounces an inheritance, that inheritance will devolve either in accordance with the deceased’s Will or in terms of the laws of intestate succession. Minor children will not be permitted to renounce their inheritance.

Our Fees

Our fees are in line with the tariff of remuneration of executors as prescribed in the regulations: