A Mail & Guardian reader recently had to fork out R10 000 to an “agent” to wind up the affairs of his mother’s estate. The reader observed that the agent, who was recommended by the Master of the High Court, did little to justify this fee. It seems that the right of the Master to assist in appointing an agent can be open to abuse as not all attorneys and estate administrators are upstanding citizens. Like any industry there are bottom feeders who make money out of the legal system and uninformed, grieving beneficiaries.
When writing up your own will, or if you are made the executor of a will, you need to know your rights and what is expected of you and any agent (attorney, trust company accountant, et cetera) you appoint. According to Bert van Blerk of Sanlam Trust, if your estate is worth more than R125 000 it will be subject to administration and you will need to have an executor. This person must be capable of managing his or her own affairs, may not be insolvent and must not have a criminal record.
The Master has the right to request that an acceptable agent be appointed to help the executor if the Master feels the estate is complex or that the person nominated is not capable of carrying out the administration, Van Blerk says. As executor you have the right to appoint any acceptable agent, not just the person recommended by the court. In this case it would seem that the appointee did not deliver. It is important to negotiate an agent’s fees as well as to set out the mandate. Van Blerk says the maximum fee is 3,5% of the estate’s gross value, but this can be negotiated depending on the work that is necessary.
This does not include other fixed administration costs such as advertising, Master’s fees and if applicable, transfer costs of fixed property, which are always payable even if no executor’s fees are claimed. Van Blerk recommends that one goes to established agents who specialise in the administration of estates such as trust companies, attorneys and accountants to ask for quotations based on the assets. An estate of R500 000 may be more work than one for R10-million depending on the requirements of the will, the type of assets and the affairs of the deceased.
Once you have appointed an agent it is important to monitor that they are carrying out their duties such as advertising to creditors in local newspapers, drawing up the liquidation and distribution account, and advertising the account for inspection at the Master’s and magistrate’s office. The agent must give a time frame on when the various aspects of the estate will be finalised and also communicate on a regular basis to the executor and beneficaries. A guideline on time frames is available on www.sanlamtrust.co.za and the total length of time is usually between five and nine months.