Administering the Deceased's Estate
Close the casket of the deceased and let the affairs of their estate rest peacefully besides them! This comprehensive guide will break down the seemingly daunting task of administering an estate of the deceased, ensure you do so effectively and efficiently.
How many ways can one die?
Contrary to popularly televised belief there are not 1000 ways to die, in fact the law only recognizes two ways, providing a statutory regulation for both: either testate on intestate.
Testate Death
The “t” in “testate” signifies the time the deceased took to prepare a Will. Under the Wills and Administration of Testate Estates Act, a person dies testate if they leave a Will detailing assets, liabilities, beneficiaries, and instructions for the executors. Upon death, the executors assume their role and must follow the Will’s instructions, as the deceased cannot provide further guidance. Legally, the executors must apply to the Court for a grant of probate, which authorizes them to manage the deceased’s affairs.
Intestate Death
If someone dies without a Will, they are considered to have died intestate. The deceased’s wishes can still be honored through family decisions and Court guidance. The estate will be managed according to the Intestate Succession Act after the family appoints administrators.
To begin, they must file an application for letters of administration with the Court. These letters grant the administrators the authority to manage the estate. Once granted, the Court-appointed administrators can start administering the estate. What’s at stake when administering an estate?
It is safe to say, “who gets the couch?” is the last of the questions asked by an administrator or executor in his plan for the estate. This primarily because the administration of an estate involves settling of all outstanding affairs pertaining to the life of the deceased, this includes assets, financial obligations, liabilities, debts etc.
The estate needs to be administered not only to relieve the deceased from being held liable from beyond the grave but also to provide the family with much needed closure after the casket is shut. Once the affairs of the deceased are fully administered, then and only then, can the deceased truly rest in peace. Involvement of the Court raises the stakes to a supreme level. As administrators or executors, you are under oath to fully administer the estate of the deceased and prove to have done so.
Pivotal to this process is being able to identify parties of interest set to benefit from the estate. In instances where there is a Will (testate death), the Will will specify beneficiaries and where there is no Will (intestate death) the law sets out how the estate is to be divided. The administrators and executors need only busy themselves with how they settle the estate and not who is to benefit from it or what they are to benefit- either the law or the Will guides accordingly.
What makes up the estate of the Deceased?
The simple answer to this is, anything owned by the deceased and/or anything the deceased had an interest in (legal or otherwise).
Assets such as land, vehicles and infrastructure make up the estate of the deceased. Also to be considered by the administrator or executor are cash in any accounts, stocks and shares in any companies the deceased may have an interest in.
A major key at this stage is to ensure proof of ownership or interest in a particular item of the deceased. Collect all necessary documentation to support the position that they indeed belong in the estate of the deceased!
Proof of no more skeletons in the closet
A closet free of any skeletons means a job well done by the executor or administrator of the estate! They have fully executed the estate of the deceased. This pauses the question; what kind of evidence does the Court want to see before burying the affairs of the deceased?
Duty of the Court in Finalizing Estate Administration
We all know the saying “what is given can be taken away”, it reigns true even in the finalizing stages of the administration of an estate.
The Court grants probate or letters of administration and in the same vein, only they can revoke the authority vested in the administrator or executor to undertake their duties in each instance.
The Court needs to be convinced that the estate has been fully executed, before it can proceed to the final stage-revoking of the grant of probate or letters of administration.
Where the deceased died with a Will (testate), proof is exhibited in a sworn affidavit of the fact that a grant for probate was ordered and that the estate was executed according to the Will. This can include auction receipts, delivery notes (in the case of items being placed in the possession of a beneficiary), bank transfers etc. From these, the executor will be able to show the Court that not only has the estate been duly administered but also there is nothing left to warrant they’re still possessing the grant of probate.
With there being nothing left to execute, the grant for probate, in essence, becomes useless. It is provided for under Section 51 (1) (d) of the Wills and Admiration of Testate Act that where the grant becomes inoperative the Court can revoke it.
The executor is relieved of their obligations to the estate of the Deceased as their task is deemed as complete by the Court. Once the Court Order for the application to revoke letters of probate is signed, the executor is as free as a bird.
Where other formal letters would ordinarily end with “yours faithfully”, letters of administration are revoked by Court Order. An application is made when seeking to revoke letters of administration where the deceased died without a Will (intestate). Through the affidavit filed into Court, the administrator will show that the estate has been administered fully through evidencing proof. This proof can be shown through inventory notes, delivery notes, transfer receipts etc.
According to Section 29 (1) (d) of the Intestate Succession Act, the letters of administration can be revoked where “the grant has become of no use and inoperative”. Showing that the estate has been administered as far as possible, will be the final nail in the coffin of the letters of administration. This will guarantee that the Court will Order that the letter of administration be revoked.
Court Orders to Revoke are Granted, What Next?
Conclusion of the administration of the deceased’s estate plays a key role in providing the necessary closure for the deceased’s family knowing all areas of interest have been settled to pave way to the new beginning.
By the end of this administrative process, the affairs are ordered and the caskets closed, the deceased and their affairs can finally rest in peace!