THE Ministry of Justice is "greatly" concerned about the current challenges in the overall administration of estates.
Justice minister Yvonne Dausab on Thursday said the ministry intends to particularly regulate the length of time it takes to finalise estate-related activities, and to propose firm sanctions for violations.
These delays in settling estates highlight the difficulties shared by people across the country, who grieve a death and then find their family's assets tied up for years in lengthy legal proceedings.
An example of such a case is that of the late Ondonga King Immanuel Kauluma Elifas, who signed his will in 2015 that was submitted to the master of the High Court in 2019. That process is still moving at a snail's pace, and far from being finalised. The justice ministry is starting with reforms by addressing current challenges with the Administration of Estates Act. Despite its aim to protect minors and persons under curatorship, the ministry wants to repeal a provision of the Administration of Estates Act because the institutions responsible for implementing it are currently not adequately ready.
The provision that is proposed to be repealed states that all financial institutions, funds and trusts are required to pay into the Guardian Fund all money and interest on money derived from long-term insurance policies, annuities, pension funds, benefits from deceased estates and any other source nominating a minor or a person under curatorship.
"The primary objective of the provision was to manage the extensive administration fees charged on these accounts by particularly unregulated administrators and trustees, in particular to ensure the beneficiaries receive greater returns on their benefits," said Dausab.
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The decision to repeal the provision was due to an opinion of the attorney general. "This will allow us to ensure all institutional arrangements at the Guardian's Fund and the Office of the Master of the High Court are in place to receive, administer and manage the funds and assets as intended with this amendment. "Thereafter, a similar updated provision which considers all concerns raised by stakeholders will be proposed for enactment in the future," she said.
Dausab believes that repealing this provision will ensure that beneficiaries' interests are protected, without disregarding the initial rationale and the mischief it intended to cure.
"The amendment was burdensome and elicited a number of unintended consequences, while attracting some serious concerns from key industry players within the financial sector, including considerations of the minor children's best interest," she said.
The provision was enacted with a view of reforming and protecting the financial interests of those who cannot do so for themselves, namely minors and persons under curatorship, she said.
