Wills & Estates

THE IMPORTANCE OF HAVING A WILL

Having a Will gives you peace of mind. It streamlines the winding up of your estate and makes sure your wishes are carried out. It also is a time to take stock of your financial position and gives you an opportunity to remedy any shortfalls or problems. You can also clarify matters, ask questions and clear up any misconceptions as to the devolution / distribution of your assets. This is particularly important if you have minor children, have been divorced or are married in community of property. Knowing beforehand what the law entails gives you an opportunity to plan your affairs to suit your beneficiaries.

If you have minor children you can set up a Trust for them in your Will and in this way you make sure that they are financially cared for and have access to funds for their maintenance with the minimum of fuss. If you die without a Will and you have minor beneficiaries, any monies due to them must be placed in the Guardians Fund at the Master of the High Court and can only be accessed on their behalf by their legal guardian who has to fill out various forms and provide supporting documentation every time they apply for funds. This can be avoided if a Trustee is appointed, who will make the necessary arrangements for payment of maintenance to their guardian with a minimum of fuss and paperwork.

Also included in your Will is the appointment of your Executor, who is the person who handles the administration of your estate. Once a person dies, their assets are frozen and cannot be dealt with until an Executor is appointed by the Master of the High Court. This delay is shortened if you have a Will appointing an executor.

Bereavement is a stressful time for everyone and you can make it easier by having a Will. Your loved ones then have someone trustworthy to turn to for advice and support, who will guide them through the process and handle all the paperwork.
So, I encourage you not to delay, book an appointment now.

THE 3 MISTAKES TO AVOID WHEN CHOOSING AN EXECUTOR OR RATHER WHAT QUESTIONS SHOULD YOU BE ASKING BEFORE YOU DECIDE?

1. CAN THEY DO THE JOB?
Check how much experience they have – 5 years or more is preferable.If you are dealing with someone who is familiar with the whole procedure, who has the legal expertise and who has built up the necessary contacts over the years, then you have found the right person. With Call Centres taking over, it is more and more important for your executor to be proactive and to know who to contact if information is not forth-coming.

2. IS IT THEIR CORE BUSINESS?
If they are an individual or small company, make sure that this is their core business, as Estates are very admin-intensive and the process needs to be managed efficiently.  If you are dealing with a Company, make sure that they have a dedicated Estates Department handling their estate matters.

3. IS THE PERSON APPROACHABLE?
While you need to know that the person is competent, losing a loved one is a traumatic event and dealing with a Call Centre, or with someone who is difficult to get hold of or who doesn’t call you back, can add to your stress.   Finding the right person is usually a ‘gut-feel’ decision that you will make, depending on your initial interaction with the person.

P.S. A note on price. Please bear in mind the old adage that “you get what you pay for”.  Would you trust your car in the hands of the cheapest mechanic? Finding the right executor to work with is an equally important decision. A competent executor should offer a turn-around time of approximately 9 to 12 months to wind up an  estate – you don’t want it to drag on for years.  You should be kept in the loop and receive  progress reports on a regular basis, and you should feel free to contact the executor should  you have any concerns or queries.  If you can answer yes to the above questions, then you  have found the right person.

If you think a professional is expensive, try an amateur.
– Red Adair –

SUMMARY OF PROCEDURE IN WINDING UP AN ESTATE

Initial interview:
Personal details and information regarding assets of the deceased collected. Reporting documents completed.

Report estate to Master of the High Court:
Lodge reporting documents with the Master and request Letters of Executorship.

Letters of Executorship received:
An advertisement to debtors and creditors is placed in the local newspaper. Certificates of balance are also requested from the relevant institutions regarding the assets, and relevant assets redeemed. Any assets to be transferred to beneficiaries need to wait until the Liquidation Account has been advertised free from any objections.

Advertisement to Debtors and Creditors placed for 30 days

Preliminary work:
Obtain all vouchers in estate (including those required to complete the final Income Tax Return and Capital Gains Tax Return). Tax Return completed and assessment awaited. When all vouchers obtained, then

Liquidation and Distribution Account is drawn up and Lodged with the Master of the High Court

Await his query sheet and confirmation. Then the Estate Account can be Advertised for the 21 day inspection period 

When Account has been advertised free from any objections then inheritances can be distributed and immovable property transferred.

NOTE: Property transactions can delay matters in the Estate.