Question:
Riëtte Brune is quoted as saying '...the executor has up to two years in which to finalise the liquidation and distribution of the estate…'

Is this true? I am the executor of my father in-law’s estate and last week I received a letter from the Cape Town Master saying I had gone over the 'six month' limit for finalising the estate and was thus liable for penalties. I am also to be removed as the executor.

Would you be so kind as to please clarity the situation urgently?

Answer:
Allow me to elaborate a bit on the process which was not discussed in full in the article.

The statement you refer to is correct — it refers to the actual liquidation and distribution of the estate which must take place within two years. What this practically means is that the executor must within two years of his or her appointment as executor ensure that the final distribution has in fact been effected. For example, where a fixed property was left to a legatee the executor must ensure that the actual transfer of the property into the name of the legatee has been finalised, actual payment of creditors must be effected, etc. If such final liquidation and distribution has not taken place, the executor must then supply the Master with reasons for the delay.

Before the expiration of the two-year period, however, a number of other process requirements need to be met by the executor (e.g. he or she must advertise for creditors who then have a prescribed period within which to lodge a claim against the estate). Within six months of his or her appointment, the executor must lodge an initial liquidation and distribution (L&D) account with the Master. The account is essentially a snapshot of all the estate assets and liabilities, anticipated inheritances and beneficiaries as well as income and expenditure arising after the death of the deceased. The account itself is just a part of the process, but obviously actual distribution cannot begin until the final L&D account has been accepted by the Master. Before being approved, the L&D account must be advertised and lie for inspection for a prescribed period, allowing for possible objections to be lodged with the Master. In the interest of expediently finalising the distribution process, it is therefore important to have the initial account lodged within six months. If there is a valid reason why the initial account could not be lodged, the executor needs to supply these reasons to the Master and the Master may grant an extension.

It appears from your question, that it is this six-month period to which the Master is referring to in his correspondence. It is important that the executor remains in constant communication with the Master ensuring that the Master remains informed as to the progress of the process.

I would urge you to contact the Master’s office at the earliest opportunity to ascertain whether you will be allowed an extension of the six-month period allowed for lodging the initial liquidation and distribution account. You may also wish to consult with an attorney or professional executor should you require some assistance as to the detail of the process.

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