Question:
Could you please spell out what procedures one should follow as executor of your spouse or a family member?s will?

Answer:
The executor?s functions are to take over the management and protect the assets in the estate. They have to procure the will, identify and notify the beneficiaries as well as inform all relevant parties of the person?s death.

There are a number of precise administrative procedures that the executor has to follow. Once these have been put in place the executor must pay the estate?s debts. He or she must also finalise income tax returns and distribute the remaining assets to the beneficiaries. So, as you can see this is not for sissies.

This entire process is overseen by the Master of the High Court to make sure that the beneficiaries get what they are entitled to. If you have been appointed as an executor the first thing you must do is to obtain a death certificate. A good funeral parlour will do this on your behalf. The cost of a funeral can range from R5000 to R20 000 (more if you invite the entire town).

You need to inform all the people who had financial dealings with the deceased of his or her death and mail them a copy of the death certificate. You then need to open up an Estate Late account with a bank in the deceased?s name. Money that accrues to the estate such as bank balances and proceeds from the sale of assets must go into the account. The executor can access some of these funds to pay administration costs.

Seek professional help.

It is a good idea to seek professional help in the form of an attorney. You should take all the relevant documentation with you such as the deceased?s bank details, title deeds to properties, insurance policy documents and any other financial documents. The attorney will then send a letter to the Master of the High Court to formally appoint you as the executor and to grant you the necessary powers to administer the estate. This procedure can take up to six weeks. However, there have been reports of huge delays in the Master?s office so be prepared for a longer wait.

If you have enlisted the help of an attorney (which I recommend) he or she will help you to advertise the estate so that creditors can register their claims. Advertisements must be run in the Government Gazette and a local newspaper. Creditors have 30 days from the date of the publication of the advertisements to lodge any claims against the estate.

During the next three months an executor or an assisting attorney will prepare the final set of accounts. This lists all the assets and liabilities in the estate, the inheritance left for distribution and the identity of the beneficiaries.

The executor must submit the account with supporting documents and vouchers (if the estate is subject to estate duty) to the Master. If all is well the Master will give approval for the account to be advertised. The executor must then submit the deceased?s final tax return to the Receiver of Revenue. Once this has happened the account must be advertised in the Government Gazette and a local newspaper and made available for inspection for 21 days at the Master?s Office and at the Magistrate?s Office in the district where the deceased lived. If no objections are lodged against the final account the Master will confirm to the executor that the assets may be distributed to the beneficiaries.

It can take up to two years to finalise an estate.

Before distributing the estate, the executor must obtain a release from the Receiver of Revenue and all creditors must be paid before the estate can be distributed. Experts say it can take 10 months to finalise an estate but it can take as long as two years. Once the executor has provided the High Court with proof that the creditors have been paid and that the assets have been distributed, the Master signs off the estate. This brings the duties of the executor to an end.

An executor can take a maximum fee of 3.5 percent of the value of the estate if they want to. Often family members do not take this fee but a bank or lawyer will charge this fee. They may also earn six percent of the income earned by the assets from the date of the person?s death. If you are the executor and you use a lawyer to help with legalities find out what the fee will be beforehand.