1. Establish date and time (if possible) of death.

2. Establish cause of death.

3. If your loved one has died of natural causes outside of a hospital, call your doctor who will tell you what arrangements need to be made.

4. If they have died of unnatural causes, immediately phone the police.

5. The attending physician, a coroner, or medical examiner will be needed to officially pronounce the death. If the deceased was in a hospital or other care facility, this is typically arranged by the staff.

6. Obtain a death certificate from the doctor or police as you will need this to close bank, power, phone accounts etc, to file insurance claims and to register the death with government agencies, among other things.

7. Find the deceased’s will and establish if there are any special instructions for the funeral mentioned in the will.

8. See if you can find out if the deceased had a funeral policy – look for documents and go through bank statements to identify possible payment for a policy.

9. Family members or a legal representative of the deceased should be contacted first if you think the deceased had a pre-arranged funeral plan. If a plan exists it will provide you with direction on how to proceed with funeral arrangements.

10. Phone the undertaker or funeral home, who can arrange all funeral matters and help with a funeral policy claim. Alternatively call your religious leader to arrange this.

11. A Funeral Director can help you make arrangements to transfer the body from the place of death to a funeral home or comparable care facility. If there has been no advanced planning, you can consult with a nearby funeral home, cremation service, or other service providers. If the deceased has not specified a particular funeral service provider, it is usually best to contact the funeral home that you expect to handle the final arrangements. You may incur an additional transportation charge if it is necessary to move the deceased to another service provider. A local Funeral Director will need to make the arrangements if the deceased is to be transferred to another city for funeral ceremonies and/or burial. .

12. Establish who and what needs to be dealt with immediately e.g. who needs to look after children or pets; have houses and vehicles been locked and perishable items removed from the fridge?

13. Notify the nominated executor and his or her financial planner of the deceased’s passing. The executor is the person or company nominated in the will to wind-up your loved ones’ affairs.

14. Contact immediate family/friends contacts to let them know their loved one has died.

15. Ensure employers/co-workers are contacted if this is relevant.

16. Notify the deceased’s employer and retirement fund.

17. If applicable, advise their church pastor/minister.

18. Notify members of any groups/organisations they may have been associated with or belong to: e.g Returned Services Veteran etc

19. Collect all the deceased’s documents, including his or her ID book or card and death certificate, and make an appointment with the executor or financial planner to report the deceased’s estate.

20. Notify the executor about your immediate cash and debit order needs. Do not withdraw money from the deceased’s bank account – discuss the issue of urgent cash needs with the executor.

21. Don’t make hasty investment decisions before the estate has been finalised. Consult with the executor of the estate for advice.

22. Where a person has died, and left either a will or property, such estate must then be administered within the deceased Estates process. This applies to any person who dies within South Africa, and leaves either property or a will (or a document intended as a will); a person who dies outside South Africa, but has South African based property, or a South African will or document intended as a will.

23. The Estate is to be reported to the Master of the High Court in whose area of jurisdiction the deceased was living within 14 days of date of death, by the person who has the deceased’s will or control of any property of the deceased.

24. Lodge the following documents with the relevant Master’s Office soon after the death occurred in order to obtain a Letter of Executorship:

• Death notice

• Original will

• Death certificate

• List of inventory

• Acceptance of Executorship (submitted in duplicate)

Executor Duties

The duties of an executor are to ensure that the final wishes of a deceased person are carried out respectfully and effectively within the framework of legislation. An executor is usually the person considered most trustworthy to ensure the deceased person’s assets are divided up according to the last will and testament.

To appoint an executor of an estate (all your assets; property & debts including bank accounts; businesses and personal items), the Master of the High Court must be notified of the death through certain prescribed documents. He or she then examines them and once satisfied with the validity of the will the Master appoints the executor by issuing a “letter of executorship”.

An executor’s duties include:

• When the executor receives the letter of executorship, he or she is obliged to place a notice in the Government Gazette and in one or more local newspapers, requesting the creditors of the deceased to notify the executor of any claims against the estate within 30 days. During this 30-day period, the executor continues to obtain valuations of fixed and movable assets in the estate, as well as particulars of the deceased’s investments. He advertises in the local newspaper on the same day as the notice appears in the Government Gazette (Friday).

• As soon as all this information has been received, the executor determines if the estate has sufficient cash (or money in the bank) to meet its obligations. If not, the beneficiaries are consulted about the way in which they intend meeting the cash shortfall. If they are unable to do so, the executor will sell assets from the estate to cover the cash deficit. Selling of assets often leads to lengthy negotiations with beneficiaries, auctioneers and others, which can delay the administration of the estate.

• The executor will contact all relevant banks & financial services companies.

• Once the Executor has been appointed, he opens a bank account in the name of the estate

• Reports the death to the revenue authorities and finalizes the deceased’s tax from 1 March to date of death. Capital Gains Tax is payable at death.

• Pays any outstanding accounts eg. doctor, funeral, etc .

• Collects relevant information of all the deceased’s assets. These assets comprise of fixed properties, furniture, firearms, vehicles, shares, proceeds of insurance policies, outstanding debts owed to the estate, cash assets and all other possible interests the deceased may have had anywhere in the world.

• In South Africa (find out the details for your country), estates with a net asset value (total assets less total liabilities) of less than R250 000 are handled under Section 18(3) which does away with the Executor having to open a bank account, advertise or account to the Master with regard to the First and Final Liquidation and Distribution account.

• Assets such as motor cars, furniture, houses are to be valued by a sworn appraiser.

• The list of inventory is collated by requesting a certificate of balance / statement at date of death from the various financial institutions with whom investments were held (banks, unit trusts, insurance houses).

• Obtain information of all debts against the estate and to settle them after their validity has been investigated.

• The Executor drafts the First and Final Liquidation and Distribution Account in accordance with the will.

• The Executor calculates the estate duty due to SARS

• Certain items are free of estate duty eg. bequests between husband and wife

• An executor’s fee is calculated per the prescribed tariff which is around 3.5% of the estate’s assets depending on the country you live in, plus VAT.

• Transfer the assets to the rightful heirs after all debts against the estate have been paid.

• Protect the interests of the creditors and heirs throughout the administration process.

• The Executor forwards the estate account to the Master with all the necessary vouchers eg. receipts or certificates of balance.

• The Master audits the estate account which may take several weeks

• When the Master is satisfied with the account the Executor must advertise for the account to lie for inspection for a period of 3 weeks allowing anyone to get a copy of the Will and the account in order to lodge a claim.

• Once this period has passed and nobody has lodged a claim the Executor awards or pays out the heirs.

• The heirs sign an acquittance stating that they have received their inheritance.

• The acquittances and the final bank statements are sent to the Master upon which, if satisfied, the Master forwards the Executor a filing notice which stipulates the completion of the estate.

• The Executor retains all records pertaining to the estate for the prescribed period.

Liquidation and distribution account (See an example https://fliphtml5.com/hpef/lvzm/basic)

• On the basis of the information obtained, the Liquidation and Distribution Account sets out all assets, liabilities and administration costs, explains how assets are divided and determines if estate duty is payable. The account therefore sums up the entire administration process.

• The compilation of a Liquidation and Distribution Account can take up to six months, depending on the size and complexity of the estate. In terms of the Administration of Estates Act, the executor must submit the account within six months of the issue of the letter of executorship, unless the Master of the Court has given permission in advance for a time extension.

• The account is submitted to the Master of the Court for examination against certain legal rules. The Master may request further information and proof from the executor.

• The examination process can take four to eight weeks.

• Once the Master is satisfied with the account, the executor makes it available for inspection by concerned parties for at least 21 days. This is achieved by placing a notice in the Government Gazette and in one or more local newspapers, indicating where the account will be open for inspection for the required period. Anyone who has an interest in the estate and who has an objection to the account may lodge an objection with the Master or, when applicable, a Magistrate, during the 21-day period.

• The Master refers any objections to the executor for a response. Once the Master has received the executor’s response, he will make a decision which is binding on the executor.

• If the executor or the person who raised the objection doesn’t agree with the Master’s decision, they can, within 30 days or any further period of time the Court allows, apply to Court for an order to set aside the Master’s decision. This could result in the administration process being postponed until conclusion of the court case and the finalisation of the estate taking place only after the objection has been settled.

• Settlement of an objection against the Liquidation and Distribution Account may take a long period of time depending on the negotiations and if the matter is referred to Court to be settled.

• If there are no objections, the executor may proceed to finalise the estate.

• If no objections are made against the Liquidation and Distribution Account, or if an objection has been settled, the executor can finalise the estate. He or she pays the creditors, hands over inheritances to the heirs and arranges for the transfer of fixed property in the names of those entitled to it. The process of transfer can take a few weeks, as there are various legislative requirements to be met.

• As soon as proof has been provided to the Master that all creditors have been paid, that the heirs have received their inheritances and that the fixed property has been transferred, the estate is regarded as finalised and the executor’s duties come to an end.

• The process of finalisation can take four to eight weeks.

What can delay settlements?

The successful administration of estates depends on the service from various external institutions, such as the South African Revenue Service, Master’s office, insurance companies, retirement funds and many others. The time spent by these institutions to finalise the affairs of the deceased affects the success with which the executor can conclude the affairs of the estate.

If any relevant documentation required is missing, this can delay the process of winding up an estate by weeks and often months so this is why it is so important that you include everything we have advised you to in your File of Life BeforeISleep portfolio and keep it up-to-date.

What documentation is needed for settlements?

The executor needs specific documents of the deceased to speed up the administration process. If certain documents, such as title deeds of fixed property or share certificates, cannot be traced, the executor must obtain duplicate documents at the expense of the estate, which may create a delay.

What costs should you prepare for?

When a loved one dies, there are usually also costs that need to be paid from the estate funds. The typical costs include:

• Funeral costs

• Master’s fees payable to the Master of the High Court.

• Advertising costs

• Auction fees

• Estate bank account bank charges

• Transfer costs of fixed property to conveyancers

• Bond cancellation costs in respect of bonds registered over fixed property in the estate

• Clearances payable to the relevant City Councils with regard to rates and taxes

• Executors fees plus VAT (if applicable)

Extracts from material published online by experts in their fields (Sanlam and PW Harvey) have been included in the above article.