When reading about deceased estates it usually means you want more information to prepare your financial planning for the day that you are no longer here, or you unfortunately lost someone that you knew or someone that was close to you.
Deceased estates can be both solvent and insolvent. In the case where the deceased estate is solvent the executer can continue to pay creditors and the process should be relatively smooth. The more difficult situation comes in when the deceased estate is insolvent.
In this case the liabilities exceed the assets in the estate. If this is the case for the deceased estate, the estate needs to be administered in terms of Section 24 of the Administration of Estates Act (AEA).
This administration process of the insolvent deceased estate will entail numerous steps and processes such as notifying all creditors, SARS, and the Master of the High Court of the insolvency. There will be a waiting period to declare the estate insolvent after various requirements are met.
There will be a chance for creditors to object certain actions which can lead to investigations and a decision ultimately made by the Master of the High Court.
After a few more proceedings there will also be a liquidation and distribution phase where creditors can then respond in a certain way.
If the deceased was married in Community of Property creditors can look to attach any property or assets as part of the estate.
The main conclusion that can be drawn is that it is extremely important to ensure that your financial planning is to provide peace and financial stability to the loved ones that you leave behind.
Unfortunately, there are circumstances where an insolvent deceased estate is inevitable, and this is where we come in.
Our services at Serenity Trust will provide you and your family with the necessary tools, knowledge, and processes to handle insolvent deceased estates should this be a situation that you or someone you know is currently facing.
We can also provide financial planning advice to ensure you do not end up in a situation where your partner is left without assets and where your valuable items are sold to pay off creditors.
If you need assistance with an insolvent deceased estate and you don’t know where to start, contact our team of experts at Serenity Trust today, we are here to help you.
