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You may have carefully decided who should inherit your home, savings and other assets. But after you die, someone still has to turn those instructions into reality. They may need to deal with banks, creditors, SARS, the Master’s Office and potentially, family members who don’t agree with one another. That person is your executor, which is why choosing one deserves more thought than simply naming someone you trust.
The legal stuff: who is an executor and what do they do?
The executor of a will is the person or persons responsible for winding up the estate. Executors are paid a fee of up to 3.5% of the value of the estate plus VAT. All estates with assets over the value of R250 000 are required to have an executor whose appointment is approved by the Master of the High Court.
Specific duties include:
- Registering your estate with the Master of the High Court
- Opening and managing a bank account for the estate
- Closing your bank accounts
- Advertising your estate so that any creditors can come forward and claim what is due to them
- Distributing your assets to your heirs after all costs, debts and taxes are paid
Who can be appointed an executor?
You can appoint anyone who is competent and over the age of 18, including someone who is a beneficiary of your will.
You can appoint as executor:
- A professional such as a lawyer or fiduciary expert or your financial adviser
- A family member, friend or colleague
It’s a responsible job, so look for someone who is organised, diligent and trustworthy, and capable of dealing with the legal and financial matters involved. The more organised your executor, the easier and quicker the process and the faster your estate will be wound up.
Top tip: Always check with the person or persons you want to appoint to make sure they agree to the job. And make sure he/she knows where to find your original will and other important documents.
Should you choose a professional or someone close to the family as executor?
It’s up to you, but before you make the decision, take into account the pros and cons of each.
Choosing a professional as executor
Executors have to juggle multiple tasks at the same time, such as managing bank accounts and dealing with the Master of the High Court, as well as finding and paying creditors and the beneficiaries of the will. This is usually easier for a professional who knows the legal requirements, processes and who to speak to.
However, a professional may not be familiar with your family, their needs or circumstances. Good communication is therefore important so that your heirs understand how your affairs are being dealt with and when the estate is likely to be wound up.
Choosing someone close to the family as executor
The main responsibility of the executor is to ensure that the wishes of the deceased are followed and that the estate is administered and distributed according to the will and the law. Someone who knows the family may also have a good understanding of their needs and circumstances.
However, if you appoint a family member who is unfamiliar with how estates are wound up, they can be overwhelmed by all the legalese and regulations, which can result in delays in winding up your estate.
You can also appoint more than one executor, such as a family member who knows your family and circumstances, together with a professional who has the legal and financial expertise needed to wind up an estate.
Consider the complexity of your estate
In some instances, it pays to appoint a professional. The more complex your financial affairs, such as if you have many investments, multiple beneficiaries or own a business, the more professional expertise may be required. And if your family is prone to disagreements, a professional can provide the objective view needed to help wind up the estate efficiently.
However, if your financial affairs are straightforward, your family gets along well and knows what is in your will, a responsible family member who meets the requirements above may be a suitable executor.
6 quick questions: Is my executor suitable?
To help you make your choice, ask yourself these key questions. The more times you answer yes, the more suitable the person may be.
- Do I and my family trust this person completely?
- Will they be able to organise and manage all my financial affairs, such as savings, investments, property and debts?
- Are they good with deadlines, a must-have skill for winding up an estate efficiently?
- Will they have the time needed to wind up my estate and keep my family updated on progress?
- Can they remain objective when dealing with disagreements or conflict between family members?
- If they don’t have all the professional knowledge required, will they know when and where to get expert help, such as from a tax practitioner or attorney?
Top tip: You can update your will and name a new executor or executors at any time.
The professional help you need from Truth About Money
Winding up an estate can be complicated, but you and your family don’t have to navigate it alone. Truth About Money, a 1Life Insurance initiative, offers a free Wills & Estate Benefit in partnership with LAW FOR ALL:
- You and your spouse can have your wills professionally drafted or amended at no cost.
- Professional support is available to help wind up your estate after your death.
- Your next of kin can access legal advice for up to 12 months after your passing, including help with disputes involving your will or deceased estate.
Your executor speaks for you
When you pass away, your executor will be responsible for turning the instructions in your will into action. Choosing someone who is trustworthy, capable and able to manage the responsibilities involved can help make the process smoother for the people you leave behind.