Deceased Estates Advanced: Dealing with Common Pitfalls Webinar

This session deals with the mistakes that most frequently delay the administration of a deceased estate, trigger Master’s queries, create SARS problems, or expose executors to complaints and liability.

The session is practical and risk-focused. It draws together the issues from the previous sessions and shows how to prevent common errors before they occur.

Key Topics

1. Reporting and Appointment Pitfalls

• Incomplete reporting documents.
• Incorrect death notice information.
• Missing wills or uncertified wills.
• Disputes over executor appointment.
• Delays in obtaining Letters of Executorship.
• Acting before appointment.
• Distinguish between Letters of Authority and Letters of Executorship.

1. Advertisement and Claims Pitfalls

• Incorrect section 29 advertisement.
• Failure to advertise in the correct newspaper.
• Late claims.
• Ignoring disputed claims.
• Paying creditors too early.
• Distinguish between secured, preferent, and concurrent creditors.

1. Asset Identification Pitfalls

• Omitting assets.
• Including assets that is not an estate asset.
• Joint estate assets.
• Trust assets.
• Failure to identify foreign or digital assets.
• Incorrect date-of-death values.

1. Liability Pitfalls

• Ignoring SARS liabilities.
• Failing to provide for administration costs.
• Not accounting for executor’s remuneration.
• Incorrect bond settlement calculations.
• Overlooking maintenance claims.
• Failing to identify suretyship exposure.
• Treating disputed claims as final without full and correct information and documentation.

1. Estate Duty and Tax Pitfalls

• Incorrect treatment of life policies.
• Failure to include deemed property.
• Incorrect spouse deduction.
• Incorrect abatement application.
• Failure to distinguish deceased tax from estate tax.
• Distributing before SARS compliance is finalised.
• Not providing for CGT or post-death income tax.

1. Distribution Pitfalls

• Incorrect heir identification.
• Incorrect intestate calculations.
• Ignoring minor heirs.
• Misapplying redistribution agreements.
• Awarding assets without consent.
• Distributing before the L&D Account has laid for inspection.
• Paying heirs before all liabilities are settled.

1. L&D Account Drafting Pitfalls

• Incorrect account structure.
• Incorrect descriptions of assets.
• Missing vouchers or supporting schedules.
• Incorrect income and expenditure account.
• Failure to balance cash.
• Poor explanation of awards.
• Inadequate notes to the account.
• Not responding properly to Master’s queries.

1. Executor Risk Management

• Keeping proper records.
• Communicating with heirs and creditors.
• Avoiding conflicts of interest.
• Managing expectations.
• Documenting decisions.
• When to obtain specialist advice.
• When to approach the Master for directions.