What is the process of winding up an estate?

Wills are a key part of the deceased estate administration process because they are legal documents that contain information such as who should take on the executorship of your deceased estate, the creation of trusts and nomination of guardians if you have minor children, and how you want your assets distributed to your heirs and beneficiaries.

The executor is the person who oversees the entire estate administration process. Executors take care of all the legal, financial and administrative details to ensure the finalising of a deceased estate is done correctly, estate fees are paid, and everything is in line with South African estate law.

Steps in the estate administration process

No two estates will follow the exact same timeframe because there will be differences between what people owned and who they wanted to leave their assets and possessions to. However, the steps in the estate administration process will be broadly the same – here’s an idea of what to expect:

1. Report the estate to the office of the Master of the High Court. This is usually done by the family of the deceased, or the executor of the estate.
2. The Master’s office issues the Letters of Executorship, giving the executor authority to wind-up the deceased estate.
3. The estate is advertised, in local media and the Government Gazette, to inform any potential creditors that the person has passed away.
4. The estate account (known as a Liquidation and Distribution account or L&D account), which sets out the assets and liabilities of the estate, is compiled and submitted to the  Master’s office for approval.
5. The fact that the L&D account is open for inspection is advertised in local media and the Government Gazette, to allow interested parties to raise any objections at the Magistrates Court or the office of the Master of the High Court.
6. Settling liabilities and distribution of assets to heirs and beneficiaries.
7. Closure of the estate.

What loved ones can expect

Losing someone you care about is emotionally difficult. The added burden of the administration of their deceased estate can feel overwhelming. To make this process easier, the Capital Legacy estate administration team has created a supportive way of working, which allows loved ones time to grieve while the administrative tasks are taken care of by expert professionals.

When a Capital Legacy client passes away, specialist Estate Consultants will meet in person with their loved ones to help them initiate the estate administration process. The Estate Consultant will explain what is required and make sure the correct documentation is submitted as soon as possible. The Estate Consultant also keeps the loved ones regularly informed of the estate progress.

If the will appoints Capital Legacy in the executorship role, and we are therefore responsible for winding up that deceased estate, these are the steps that will be followed:

1. Loved ones submit the estate claim. It is reviewed and an estate enquiry is created.
2. An in-person meeting is arranged between the loved ones and the Estate Consultant.
3. The Estate Consultant gathers the relevant information and documentation and inputs the estate details into the estate administration system. This is known as ‘onboarding’ the estate.
4. The estate is reported to the Master’s office at the High Court.
5. The Estate Consultant hands over to a specialist Estate Practitioner who takes care of the rest of the estate administration process.
6. The estate account is submitted to the Master’s office.
7. Independent quality checks are conducted to make sure every step of the estate administration process was done correctly. Once the Master approves, the account preparation starts for closure of the estate.
8. Final formalities are concluded, and the estate is closed.

How long does it take to finalise a deceased estate?

In South Africa, winding up deceased estates can take as long as two to five years. There is a lot of anecdotal evidence that details the struggles and challenges faced by individuals who are trying to finalise a loved one’s estate, even years after the person passed away. 

If appointed executors, Capital Legacy can manage all aspects of winding up deceased estates so they can be finalised in the shortest possible timeframes – usually months, not years. This means heirs and beneficiaries do not have to wait unnecessarily long for their inheritances. It also brings much-needed closure and the freedom to carry on with their lives.