Demystifying the executor in a deceased estate

During a person’s lifetime s/he will gather assets, in other words, belongings such as a house or a motor vehicle. These assets and liabilities will form part of a person’s estate. At the death of that person, his/her deceased estate must be administered, in other words, divided, distributed and controlled by someone. This person is called an executor.

However, the role of an estate executor and who can be appointed as one has been largely misunderstood.

What does the executor do?

“Executor” is the legal term for referring to the person, or people, nominated in your will to carry out the directives you set out in your will.

1. This means that it is the executor’s responsibility to disburse your property to the mentioned beneficiaries in your will, but also obtain information on potential heirs, collecting and arranging payments, and approving or disapproving creditors’ claims.
2. It is the executor’s duty to calculate and pay the estate tax, and to ensure that the correct documentation is filed with the relevant authorities.
3. The executor is the individual that represents your estate. 

Who can be appointed as the executor?

It has become normal to appoint a friend, family member or beneficiary to act as the executor, as they most likely have intimate knowledge of your estate and your affairs, but also, they will not rack up the fees that a legal body might accrue.
However, there is a misconception that you can avoid the fees by appointing a family member as the estate executor, but this could also mean that you are deferring the cost to the nominated family member.

1. Family members appointed as executors on larger estates immediately find themselves out of their depth, and not only end up hiring a professional executor, but may also pay more for these services than necessary.
2. A simple way to address this is by appointing a “professional” executor during your lifetime. This allows you to negotiate the executor fees.

If you appoint a family member, make sure that they understand that they will have to appoint a professional agent, and that they should negotiate the fee and be very cautious of agreeing to a fee arrangement in terms of which the professional agent charges their professional fee, instead of the legislated scale.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

References:

https://www.legalwise.co.za/help-yourself/legal-articles/duties-executor
http://www.fin24.com/Money/Wills-and-trusts/Role-of-executor-of-deceased-estate-20150513

June 19, 2017
Slip and trip: who is liable?

Slip and trip: who is liable?

With a growing number of ‘slip and trip’ cases being referred to our courts, property owners must understand what they need to do to avoid liability for injuries sustained on their property. In this article, we examine the recent case of Ngwenya vs Accelerate Property Fund (2022/13159) [2024] ZAGPJHC 880 to explore the latest rulings regarding property owner liability.

Developers caught off guard with sectional title costs

Developers caught off guard with sectional title costs

In the recent case of Club Kerkira (Pty) Limited v Trustees of Club Kerkira Body Corporate and Others (D11451/2021) [2024] ZAKZDHC 40, the KZN High Court had to clarify the position as to whether the holder of a real right of extension (in this case the developer) had a responsibility to contribute towards the maintenance costs of the sectional title scheme.

See no evil, speak no evil: reporting misconduct

See no evil, speak no evil: reporting misconduct

Enforcing workplace rules frequently relies on employees reporting misconduct that they have witnessed by fellow employees to their employer. This is vital for maintaining workplace discipline and ensuring that employees adhere to the employer’s rules. But what is the worst that can happen to an employee who elects to protect a fellow employee by keeping quiet about their transgressions?

Sign up to our newsletter

Pin It on Pinterest