Once again, a lawyer from Garlick and Bousfield, Keegan Duggan, has supplied information in a newspaper column that is valuable to pass on. It was in the Natal Mercury of 13 October 2021.
This article of mine is linked to an earlier one about the extent of an Executor’s duties. Mr Duggan discusses the delays being experienced at the Master’s and Deeds’ Offices as well as the financial impact these have on the family of the deceased and the Executor.
The Covid Pandemic has exacerbated these delays due to the thousands more deaths than normal, bringing a lot more work to the 2 Offices which are also short-staffed because of the Pandemic. It’s a Catch-22 situation and we all need patience as hard as that is at a time when one is mourning for a loved one.
Besides the time taken for the appointing an Executor by the Master of the High Court and final closure with the Deeds Office, financial difficulties may be experienced by the family of the deceased. There are so many things, eg funeral costs, medical accounts etc needing immediate payment or within a short space of time and not many families have spare cash at this time, especially if it is the breadwinner who has died. Remember, when a person dies her/his accounts are frozen immediately and the Master requires the bank records which include the date of death to confirm that withdrawals have not been made.
Another financial situation which may affect the family’s immediate income is offshore investments and assets in other countries. Access to these may depend on who owns them. If it is the deceased, pay out could take some time. A serious question for one with offshore investments and assets to ask him/herself is, “Should I have an International Will clearly stating that this covers all my assets or have a Will for each country where these are held?” It must also be remembered that, whether or not a person has one International Will or a Will in each country where there are assets, costs will include offshore probate fees charged in foreign currency. There will also be foreign taxation fees, payable in the relevant currency, adding to basic costs. Mr Duggan points out that few financial planners take these fees and costs into account when preparing an Estate Plan. You must be vigilant and ensure that all assets are properly recorded in your Will.
He completes his article by noting that greater access to international investment platforms by South Africans and the taxation applied to these, administering a deceased estate has become more complex. The only way that a person can make this any easier is by having a Will with a nominated Executor. The Pandemic has simply highlighted this to a greater extent.