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No Will to Keep Property

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www.MyPE.co.za: A reader, whose mother passed away without leaving a will, has approached our experts with a query about transferring a fixed property to a beneficiary.

He has obtained a letter of executorship and would like to know what the transfer process entails, how long it will take and whether the property can be sold.

“The panel has touched on this issue before, but it is useful to point out some of the important aspects again,” says Charl Crous from Du Toit Strombeck Attorneys in Port Elizabeth.

“The letter of executorship is issued by the Master of the High Court to the executor. This is the person who will take charge of finalising the estate.”

If there is no will indicating who the executor will be, says Crous, the Master may appoint a suitable executor by acting on nominations received by heirs and family members. “A bond of security is generally required.”

According to Crous, the executor does not necessarily have to be a beneficiary of the estate.

“In the absence of a will, the law of intestate succession determines who the beneficiaries are. If there is a surviving spouse and children, they will share in the proceeds of the estate in a predetermined way.”

Crous points out the reader does not mention whether there are any other potential beneficiaries, such as brothers and sisters.

“In the absence of any siblings, the reader – as sole beneficiary and executor – may decide how to deal with the property, taking into account any applicable provisions of the Administration of Estates Act.”

It is in fact possible for the property to be sold “out of the estate”, before it is transferred to the beneficiary, says Charlotte Vermaak from Chas Everitt Port Elizabeth.

“The executor signs the agreement of sale and all relevant documents, and the proceeds of the sale are paid into the estate’s banking account.”

Vermaak says one of the executor’s main responsibilities is drafting the liquidation and distribution account.

“This sets out how all assets in the deceased estate have been dealt with and to whom they have been distributed.”

If the property has been sold, this would be indicated in the account, which should also reflect the distribution of the cash to the beneficiary, says Vermaak.

“The transfer process is the same as for any property sale and usually takes six to eight weeks to finalise.”

Vermaak says the costs are typically borne by the purchaser, including any transfer duty. “The seller may be liable for the agent’s commission, if one was employed.

“Depending on the value of the property, there could be estate duty and capital gains tax implications, which the executor would have to account for and pay on behalf of the estate.”

CLICK HERE to have your property related questions answered courtesy of Coetzee Gouws from Full Stop Communications.

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Fullstop

Full Stop Communications is a public relations consultancy in Port Elizabeth in the Eastern Cape of South Africa focusing on media relations and copywriting. We drive regional and national media campaigns in a number of fields, most notably in the property, legal and sports arenas. We also specialise in media monitoring, ghostwriting, editing, translation and advertising. See more articles by Full Stop.