How long does it typically take to administer a deceased estate?
The administration of a deceased estate follows a structured process governed by the Administration of Estates Act. While the time frame can vary significantly depending on the complexity of the estate, a general timeline spans from 6 to 24 months. This duration allows for the comprehensive settlement of the estate, including the identification and collection of assets, payment of debts, and distribution of the remainder to the rightful heirs. There are various factors that influence this timeline. One of the most significant factors influencing this timeline is the turnaround time experienced in any Master’s Office. The efficiency of the various Master’s Offices in South Africa varies a lot. Some may take as little as few days to attend to any request or document lodged whilst others sometimes take many weeks to attend to the same request.
Step-by-Step Overview
Reporting the Estate & Appointment of the Executor
The process begins with reporting the deceased estate to the Master of the High Court, ideally within 14 days after death. The Master then appoints an executor to oversee the administration process. This normally takes between 1 to 4 weeks from the point were the process is started.
Notice to Creditors – Section 29
Once appointed, the executor must place a notice in the local newspaper and the Government Gazette, inviting creditors to lodge their claims against the estate within 30 days. The notice period prescribed in the act is 30 days. The publishing deadline for filing the advertisement is normally the Wednesday prior to the Friday of publication effectively extending this period to between 5 to 6 weeks in total.
Opening of Estate Bank Account, Valuation and Collection of Assets
The executor must do a valuation of assets and must also collect all cash held by the deceased by closing the deceased’s accounts and having the funds paid into the estate bank account. How long this will take will depend on the number of different accounts to be closed as well as the complexity and extent of the assets to be valued. Third parties that are slow in closing accounts and transferring funds to the estate bank account could also have a significant effect on the time it takes to proceed to the next step. This part of the administration process normally takes anywhere from 1 to 4 months.
Preparation of Liquidation and Distribution Account
Once all the assets have been valued, cash collected, and creditors identified the executor must proceed to prepare a Liquidation and Distribution Account. The account gives full details of all assets, liabilities, and administration expenses of the estate as at date of death as well as the proposed distribution of the net estate amongst the heirs. The account is lodged with the Master for approval and is accompanied by supporting documentation such as the valuations done in respect of property and the estate bank account statements reflecting the amounts paid into the estate. This phase normally takes between 1 to 2 months. The preparation of the account is normally finalised soon after the final facts that must go into this account becomes available to the executor. The period awaiting the Master’s consideration and approval of the account would represent most of the time spend during this phase.
Notice of L&D account laying for inspection – Section 35
After the L&D account is approved the executor must place an advertisement advising that the account shall lay for inspection for a period of 21 days. The same publishing delays apply which mean this part of the process normally takes about 5 weeks. If no objections are made the Magistrate issues a certificate to the effect is issued. This certificate must be sent to the Master requesting him to confirm that the executor may proceed with the payment of creditors and the distribution of inheritances. The approval part could add up to 3 weeks.
Finalization and Distribution
The cash payment of creditors and heirs normally follows immediately whilst the transfer of immovable property could take anywhere from 3 to 4 months. In bigger estates awaiting audits from SARS could also seriously delay this part of the process. Once all creditors have been paid and inheritances distributed proof of same is provided to the Master. The original Letters of Executorship is also at this point returned to the Master together with a request that the Master confirm the finalisation of the estate.
Factors affecting the timeline
Several factors can influence how long it takes to administer a deceased estate:
- The complexity of the Estate – Larger estates with numerous assets, debts, and beneficiaries typically take longer to settle.
- Disputes and litigation – Disputes amongst heirs and litigation about the validity of wills will seriously delay the finalisation of an estate.
- Tax matters – Settling the deceased’s tax affairs, including obtaining a clearance certificate from SARS, can be time-consuming.
- Property sales – If the estate includes property that must be sold, the market conditions and sale process can add to the timeline.