The first choice is to select an executor in your will. This means that you should have a will that you regularly review to ensure that your executor nomination is still appropriate and meets the requirements listed below. As a rule, you can select anyone as your executor, although usually, the selection may be a family member, or more frequently a professional or specialist estate administrator. The executor nominated may involve or instruct professional estate administrators to assist him/her in the administration of your estate, given that the winding up of a deceased estate can be a complex process.
The person you choose as your executor must accept the appointment and will then be officially appointed by the Master of the High Court upon your death. Should you not have a valid will at the time of your passing, your family can choose someone to act as the executor. If the chosen person is not a close family member, the Master of the High Court will require security with reasonable costs for the furnishing of security to be paid by the estate.
Considering the extensive responsibilities and the personal nature of the role, you might be inclined to choose a close family member who thoroughly understands and will honour your wishes, as well as those of your beneficiaries with the necessary sensitivity. Alternatively, you may designate a professional such as an attorney, accountant or fiduciary expert as your executor if they possess more expertise in the administrative procedures relating to the administration of a deceased estate. Irrespective of which option you choose, the following factors are important when making your selection.
Availability
Administering an estate is not only complex but also time-consuming, particularly when not done regularly. Your executor must have the time and willingness to manage all the required paperwork and steps to finalise an estate. This typically entails liaising with insurance companies, creditors, debtors, the Master of the High Court, financial institutions, accountants, conveyancing attorneys, valuators and SARS. Where more than one executor is appointed, the availability of all executors must be considered to prevent potential delays due to the unavailability of an executor.
Interpersonal skills
Your executor steps into your shoes and will have to inform your beneficiaries about the details of your will and address any inquiries they may have. Your choice must therefore be someone who can clarify complex terms and explain the administration process to heirs as well as resolve issues and questions that typically arise during the process. Your executor should preferably be a calm, level-headed individual who understands the emotionality of the situation but is trusted in their advice, objectivity and ability to carry out their duties.
Financial capacity
Your executor must manage all the financial aspects of your estate, including overseeing your assets, bank accounts, insurances, share portfolios, and properties, settle your debts, deal with estate cash shortfalls and ultimately distribute your assets according to your will. It is therefore essential to select someone with demonstrated financial proficiency and since they are dealing with your finances, who is highly trustworthy and ethical. It should be noted that the appointed executor must be financially stable, as the Master of the High Court may not approve their appointment should they be insolvent.
Knowledge and competency
When the value of an estate exceeds R250,000, it is necessary to submit a liquidation and distribution account to the Master of the High Court. This account should include estate duty calculations, which must also be submitted to SARS. If the chosen executor is not an attorney, accountant, or fiduciary expert, they will need to engage one to assist with preparing the account and ensuring the accuracy of all tax calculations. To prevent any delays in the administration process, it is important to ensure that the chosen executor possesses the required knowledge or has access to the necessary professionals to assist in finalising the estate.
In conclusion, when reviewing your will, take the time to consider the options available for your executor and measure them against the factors listed above. Where possible, it is useful to establish a connection with the individual or organisation nominated to ensure they understand your will and familial wishes and provide the necessary peace of mind that your family and estate will be in good hands.
Disclaimer: This article is the personal opinion/view of the author(s) and is not necessarily that of the firm. The content is provided for information only and should not be seen as an exact or complete exposition of the law. Accordingly, no reliance should be placed on the content for any reason whatsoever and no action should be taken on the basis thereof unless its application and accuracy have been confirmed by a legal advisor. The firm and author(s) cannot be held liable for any prejudice or damage resulting from action taken on the basis of this content without further written confirmation by the author(s).
