Dealing with Other Expenses

A) WHAT EXPENSES ARE PAID BY THE ESTATE?

• • Funeral expenses by way of an initial guarantee from the Executor, however it is best to provide for these expenses through a funeral policy, or have cash available to cover the cost;

• • The Executor will refund the spouse / child / family member if they have paid for the funeral expenses in the course of the administration process, however this can take a number of months;

• • All debts due by the deceased;

• • Executor’s fees;

• • Master of the High Court fees;

• • Outstanding pre-death Taxes;

• • All Post-death Taxes;

• • Estate Administration costs;

• • Bond cancellation fees;

• • Conveyancers and Transport fees;

• • Any professional fees for work not covered by the duties of the Executor.

B) DO I STOP PAYING MY INTEREST-BEARING ACCOUNTS SUCH AS CREDIT CARDS, HOME LOANS ETC?

• • On death, interest will not stop accruing on these accounts.

• • If possible, the surviving spouse must try to keep the payments up to date.

• • The Executor will settle the outstanding amounts, providing sufficient cash / life insurance pay-outs are available.

C) WHEN WILL CASH BE MADE AVAILABLE FOR LIVING EXPENSES?

• • Provision is made in the law for the Executor to make an advance to the spouse for maintenance during the administration period.
    
    
  • However, it is important to note that the spouse does not have immediate access to cash resources, as arranging for an advance can take a long time.

• • The Estate must first be reported to the Master of the High Court, whereafter an Executor is appointed.

• • After the appointment, the Executor can open an Estate Late Bank Account to receive funds.

• • Once the Estate Late Bank Account has been opened, the Executor can commence requesting the transfer of funds from Banks and Insurance Companies into the Estate Late Account.

• • IT IS RECOMMENDED THAT FUNDS BE KEPT AVAILABLE IN A SEPARATE ACCOUNT TO COVER DEATH EXPENSES AND TO PROVIDE FOR MAINTENANCE FOR AT LEAST 2 TO 3 MONTHS.

D) WHAT WILL HAPPEN TO THE DOMESTIC / GARDENER / PETS?

• • In accordance with the Act, the Executor is obliged to pay workers any outstanding salaries, leave pay and any other amounts owing to them, i.e. salary in lieu of notice.

• • You should also consider what should happen to your pets and if possible, give clear directions in your Will on how this should be dealt with.

E) WHAT IS A LIQUIDATION AND DISTRIBUTION (L&D) ACCOUNT?

• • It is a comprehensive list of the deceased’s Assets and Liabilities, reflecting their values as at date of death.

• • This account must be prepared in a prescribed format as set out by the Master of the High Court.

• • The name and entitlement of each beneficiary appears in the account.

• • Once approved by the Master, it will lie open for inspection by the public/interested parties at the local Magistrate’s office for a period of 30 days.

• • During this 30 day period, the public/interested parties can lodge an objection against the account.