I have previously written many articles on the administration of deceased estates. I have explained that a person can die testate or intestate.
When a person dies testate, it means he or she died having left a valid will. In that case, the estate shall be administered in terms of the valid will.
If he or she dies intestate it means there was no valid will and the administration of his or her estate shall be done in terms of general laws.
In this article, I share with you the legal position on the administration and distribution accounts in estate administration.
The law on administration and distribution accounts, Section 52 of the Administration of Deceased Estates Act (Chapter 6:01) or "the Act" applies.
The following are the key provisions in Section 52 of the law.
Every executor shall administer and distribute the estate in respect of which he is appointed according to law and the provisions of any valid will relating to that estate.
Soon after the notice period required to be placed in the Government Gazette and a local newspaper concerning the estate, but within six (6) from the date the letters of administration were issued to the executor (ie the date when the executor was appointed), or in terms of any further time as may be allowed by the Master of the High Court (The Master), the executor is required to frame and lodge with the Master an account showing the administration and distribution of the estate up to the date when the account was lodged, together with a true copy of that account.
In simple terms, the executor is required to lodge with the Master an administration and distribution account for the estate.
If the account is not final, to be stated shall be all debts due to the estate and still outstanding and all the property still unrealized and the reasons why they have not been collected or realised.
The executor is required to render periodic or regular accounts of his administration and distribution accounts, until the estate is finally liquidated.
In terms of section 52(6) the executor shall give due notice that the account is open to inspection, by placing an advertisement in the Gazette and a local newspaper.
He or she shall state in that notice the period during which and the place at which the account will lie open for inspection.
This is an important stage.
In terms of section 52(8), any person interested in the estate may at any time before the expiration of the period allowed for inspection lodge with the Master in writing any objection, with the reasons thereof, to that account.
If there is no objection, or any objection has been withdrawn or not progressed to the High Court, the executor shall proceed to pay out the creditors and heirs and shall lodge with the Master the vouchers in support of the account.
When the liquidation has been finalised to the satisfaction of the Master, the executor shall then be entitled to be discharged by the Master.
Usual contents of an administration and distribution account
The following are some of the things included or found in a liquidation and distribution account:
Assets, usually the immovable properties, with their details and values.
Liabilities or claims against the estate.
This includes the Master's fees, costs of administering the estate such as the advertisements costs and the executor's fees.
The net assets or residue available for distribution.
The distribution account will show the distribution of the net assets to the heirs or beneficiaries, and the value of the assets so distributed.
The executor will sign off the account.
Conclusion
The administration and distribution account is an integral part of estate administration and the executor, creditors and heirs need to be familiar with it.
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Disclaimer
This simplified article is for general information purposes only and does not constitute the writer's professional advice.
Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z), ACCA (Business Valuations) MBA(EBS, Heriot-Watt, UK) is the Managing Partner of Hofisi & Partners Commercial Attorneys, chartered accountant, insolvency practitioner, commercial arbitrator, registered tax accountant and advises on deals and transactions. He has extensive experience from industry and commerce and is a former World Bank staffer in the Resource Management Unit. He was recently appointed to sit on the Council of Estate Administrators in Zimbabwe. He writes in his personal capacity. He can be contacted on +263 772 246 900 or [email protected] or [email protected]. Visit www//:hofisilaw.com for more articles.
