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WHAT TO KNOW ABOUT WINDING UP A DECEASED ESTATE There is a set process to be followed when a person dies regarding how his or her assets (and debts) are dealt with and distributed. WHEN someone dies, that person’s deceased estate comes into existence and must be wound up in terms of the Administration of Estates Act. Depending on the nature of the estate, the winding-up process can be lengthy. “The time required to wind up a deceased estate will be determined by, among other things, the size and complexity of the estate,” says Madelein Steenkamp, legal specialist at PSG Wealth. Winding up the estate, step by step, Steenkamp says a deceased estate must be reported to the Master within 14 days of the date of death. ● As a first step, the executor
(nominated in the will or appointed by the Master of the High Court) will consult with the family to obtain all necessary information to report the estate to the Master in the jurisdiction where the deceased lived during the year before his or her death. ● The executor will be issued a letter of executorship – authorisation to act in respect of all matters pertaining to winding up the estate. This includes taking control of all assets of the deceased, opening an estate bank account, notifying third parties of the death of the deceased, settling liabilities and transferring or selling assets. ● The executor will need to advertise the estate in the
Government Gazette and a local newspaper. “This advertisement is for the attention of debtors and creditors of the deceased. It informs them that they have a period of 30 days from publication to submit their claims against the estate,” she says. ● The executor must also notify the South African Revenue Service of the death – this must be done even in cases where the deceased was not registered for tax purposes and no estate duty is payable. An income tax return must be submitted each year until the estate becomes distributable. ● Once the 30-day period of the advertisement has expired, and all claims have been lodged, Steenkamp says the solvency
