Deceased Estates Advanced: Redistribution Agreement Webinar

This session focuses on Redistribution Agreements in deceased estates. Redistribution Agreements are often misunderstood and incorrectly used. The session explains when redistribution is appropriate, who must consent, how it affects heirs, and how the redistribution must be reflected in the Liquidation and Distribution Account.

Key Topics

1. What Is a Redistribution Agreement?

• Meaning of redistribution in deceased estate administration.
• Difference between inheritance, sale, donation, and redistribution.
• Why redistribution is not simply an informal family arrangement.
• When redistribution may be useful.
• When redistribution should be avoided.

1. Legal Requirements

• Parties who must consent.
• Capacity of heirs and beneficiaries.
• Minor beneficiaries.
• Beneficiaries under curatorship.
• Trusts as beneficiaries.
• Married heirs and spousal consent considerations.
• Written agreement requirements.

1. Redistribution in Testate Estates

• Redistribution where there is a valid will.
• Altering the practical effect of a will.
• Respecting the testator’s intention.
• Risks of contradicting the will.
• Specific bequests and redistribution.

1. Redistribution in Intestate Estates

• Redistribution between intestate heirs.
• Surviving spouse and descendants.
• Customary law and multiple-spouse scenarios.
• Minor children and Guardian’s Fund implications.
• Equalisation between heirs.

1. Immovable Property Redistributions

• Awarding property to one heir.
• Cash equalisation payments.
• Bonded properties.
• Transfer documents.
• Transfer duty and conveyancing considerations.
• SARS and municipal clearance issues.

1. Tax and Cost Consequences

• Capital gains tax considerations.
• Transfer duty considerations.
• Donations tax risk.
• Estate Duty impact, where relevant.
• Conveyancing fees.
• Executor’s fee implications.
• Liquidity consequences.

1. Drafting the Redistribution Agreement

• Key clauses in a Redistribution Agreement.
• Identifying the estate assets.
• Identifying the original entitlement.
• Recording the agreed substituted entitlement.
• Equalisation payments.
• Warranties and acknowledgements.
• Signatures and supporting documents.

1. Reflecting Redistribution in the L&D Account

• Showing redistribution.
• Explaining the redistribution in the account.
• Attaching the agreement.
• Avoiding ambiguity in awards.
• Handling objections.
• Practical Component