Legal Practice Act — LPC Practical Vocational Training Guide: LPC Guide for Wills and Estates (Regulation 6(10)(j)) (source: https://lpc.org.za/wp-content/uploads/2026/03/j-LPC-Guide-for-Wills-and-Estates-ito-Regulation-610j.pdf) PRACTICAL VOCATIONAL TRAINING (PVT) STRUCTURED COURSEWORK PROGRAMME FOR CANDIDATE LEGAL PRACTITIONERS (CANDIDATE ATTORNEYS) Wills and estates, in terms of Regulation 6(10)(j) Author acknowledgement Mr. Kyle Kietzmann 2026/2027 PVT Structured Coursework Programme Publication and Copyright information © 2026/2027 The South African Legal Practice Council. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the South African Legal Practice Council. This intellectual property is strictly for the education and training of candidate legal practitioners as mandated by the Legal Practice Act 28 of 2014 and are not for commercial resale Acknowledgements The Legal Practice Council extends its gratitude to the Evaluator for his/her rigorous review, quality assurance, and contributions to the pedagogical effectiveness of this study guide: Reviewer: Mrs., Shivani Moodley (Pillay) ( Practising Legal Practitioner); & Ms., Hajira Bibi Kara (Practising Legal Practitioner) Published by: The South African Legal Practice Council National Office, Building 10, Riverview Office Park 100 River View Park Street, Halfway Gardens Midrand, 1686 GUIDE FOR WILLS AND ESTATES Regulation 6 (10)(j) FIFTEEN GUIDES There are fifteen guides for practical vocational training of candidate attorneys. This guide deals with the Wills and Estates module in regulation 6(10)(j). OVERVIEW On 20 September 2014 Parliament assented to the Legal Practice Act 28 of 2014 (LPA). In terms of section 4 of the LPA, the Legal Practice Council (LPC) was established on 31 October 2018. The following day, on 1 November 2018 the bulk of the rest of the LPA came into effect. The Legal Practice Act regulates all legal practitioners whether on the practising roll or the non-practising roll. There are three forms of legal practice. They are an attorney, an advocate and an advocate with a Fidelity Fund certificate: see section 34 of the LPA. Under section 109(1)(a) of the LPA, the LPC published GN R921 in GG 41879 of 31 August 2018, as amended by GN R3779 in GG 49104 of 11 August 2023. The compulsory course work required in the regulations for candidate attorneys was standardised by the LPC in terms of the Norms and Standards. Regulation 6(10) reads: “(10) The programme of structured course work referred to in sub-regulation (1)(a) and (b) must be standardised and uniform throughout the Republic and comprise the following modules: (a) constitutional practice; (b) professional legal ethics; (c) personal injury claims; (d) high court practice; (e) magistrate’s court practice; (f) criminal court practice; (g) labour dispute resolution; (h) alternative dispute resolution; (i) attorneys’ bookkeeping; (j) wills and estates; (k) matrimonial law; (l) legal costs; (m) drafting of contracts; (n) information and communication technology for practice, and associated aspects of cyber law; and (o) introduction to practice management.” The LPC published the Norms and Standards on 11 December 2020 in Government Gazette 43981 under section 3 (g)(i) read with section 6(1)(b)(i) and section 95(1)(n) of the LPA. Regulation 6(10) requires candidate attorneys to be trained in the modules listed above. The similarity between regulation 6(10) for candidate attorneys and regulation 7(9) for pupils is not an accident. Section 32 of the LPA permits legal practitioners at any time, as determined in the rules and upon payment of the fee determined by the LPC, to apply to the LPC to convert their enrolment as attorneys to that of advocates and vice versa. Consequently, the training of candidate legal practitioners must allow for seamless section 32 conversions. Each guide per module deals with the requirements in regulation 6(10). Examiners are required to set questions drawn only from the latest LPC candidate attorneys’ curriculum and reading list. The combined curriculum and reading list are referred to as the “syllabus”. Each of the fifteen guides will assist training supervisors, mentors, busy legal practitioners and candidate attorneys to navigate the syllabus. The focus of the syllabus is on practical vocational training. INTRODUCTION TO EACH GUIDE Each guide per module in Regulation 6(10) is designed to assist candidate attorneys to understand, in real time, the minimum necessary under practical vocational training to become effective attorneys in practice. The essence of effective legal practitioners is the ability to read, to assimilate legal principles from that reading and to apply those principles to the facts of your client’s case and in argument before courts, tribunals, disciplinary bodies, and any other forms of formal gatherings and meetings. The guides avoid prolixity. However, each guide requires dedicated concentration. For the examinations, candidate legal practitioners (candidate attorneys and pupils) must be up to date with the latest Wills and Estates cases to within one week before the date of each exam. The guides do not rehash what you studied at University. Your LLB proves your capability. This guide will assist you to prepare for the LPC admission examinations. More importantly, this guide will also equip you to be an effective, competent, calm and (reasonably) confident attorney when you enter the legal profession. REQUEST TO CANDIDATE ATTORNEYS FOR DUE DILIGENCE Please read this guide attentively. Please complete reading all the material in the LPC reading list. Please note the notional hours to complete all 15 guides are 400 hours. Please note this guide, like the other fourteen guides, is sufficient for self-study. Please remember, the exams are based on the LPC’s most up to date reading list. • Currently the most up to date syllabus dates from 28 March 2025: Notice 3086 of 2025 published in Government Gazette 52388. • Matters omitted from the LPC reading list will not be in the examinations unless the statute, case or article under question is included in your exam paper and you are allowed extra reading time to consider that statute, case or article. • Matters mentioned in the LPC reading list are the subject of exam questions. • You will be required to answer the exam questions from the perspective of: o Facts first o Law later • The LPC exams, also referred to as assessments, are practical in nature. • The questions will proceed from the following perspectives: – o What would you, as attorney of record, advise your client to consider? o What would you, as attorney of record, advise your client to do? o When and why would you refer a matter to another attorney or to counsel? o And similar practical questions. REFERENCES One of the products of Juta & Co Ltd is Jutastat. Most of the notes to this guide are downloaded from Jutastat. Please read the notes with care and diligence. This guide also relies on the Southern African Legal Information Institute (SAFLII). SAFLII is free and open to access on the Internet. NOTE WELL The sequence of this guide follows the sequence in the most recent LPC PVT syllabus of 28 March 2025 for candidate attorneys. The fifteen guides are designed to be updated when the LPC so requires. Bullet points below are drafted to assist you to grasp the material in the reading list. LPC SYLLABUS AND THE OFFICIAL SOURCE FOR ALL EXAMINATION QUESTIONS AT THE LPC ATTORNEYS’ ADMISSION EXAMS Guide for Wills and Estates Regulation 6 (10)(j) CURRICULUM READING LISTS AND COURSE CONTENT Introduction to Wills and Estates Legislation The Wills Act 7 of 1953 Wills Van der Merwe v The Master and Another 2010 (6) SA 544 The Wills Act 7 of 1953 (SCA) especially at paras [14] to [19] The Trust Property Control Act 57 of 1988. Delport v Le Roux 2022 ZAKZD 51 Drafting Wills. Intestate Succession Act 81 of 1987 Using plain language, avoid old precedents. Taking instructions, what one needs to know Maintenance of Surviving Spouses Act 27 of 1990 to draft a will. Proper consultation. Recognition of Customary Marriages Act 120 of 1998 The role of sound literacy skills. Reform of Customary Law of Succession and Regulation of Interpreting (archaic) Wills. Related Matters Act 11 of 2009. Capacity to benefit under a Will Incompetency of a person involved in the Administration of Estates Act 66 of 1965 execution of a Will to inherit and the maxim Estate Duty Act 45 of 1955 of “de bloedige hand erft niet”. The Trust Property Control Act 57 of 1988 Formalities and the Execution of Wills - Section 2(1)(a) National Health Act 61 of 2003 Amendments of Wills - Section 2(1)(b); Codicils PRINCIPAL WORKS The Court’s overriding discretion regarding • Jamneck & Rautenbach The Law of Succession in South the validity of wills - (Section 2(3)) Africa, 3rd Edition, (2017) Oxford University Press, Cape Town Drafting Living Wills. Does the National Health Act 61 of 2003 • Testamentary Succession in General make provision for a living will? • Ngubane v RAF 2022 (5) SA 231 (GJ) especially at Testate and Intestate Succession. para [27] Intestate Succession Act 81 of 1987. • Formalities and the Execution of Wills, Maintenance of Surviving Spouses Act 27 of Amendments of Wills, and Incorporation by 1990 Reference Recognition of Customary Marriages Act 120 • Capacity to make a will and to witness a will of 1998 • Capacity to Benefit under a Will or on Intestacy Reform of Customary Law of Succession and • Invalidity of Wills Generally: Mistake, Fraud, Regulation of Related Matters Act 11 of 2009. Duress and Undue Influence; Revocation and Administration of deceased estates. Revival • Custody and Registration of Wills Drafting liquidation and distribution • Appointment of Heirs and Legatees: Dies, accounts Conditions Administration of Estates Act 66 of 1965 • Vesting • Substitution Estate duty. • Legacies Estate Duty Act 45 of 1955. • Accrual What to do when the validity of a will is • Interpretation: Principles contested. o Canons of Construction and Presumptions Drafting wills and trusts and estate o Specific Words and Phrases administration Intestacy and inheritance law Estate planning and tax considerations Ethics • Intestate Succession and professional responsibility in wills and estates practice Wilkinson and Another v Crawford NO and Others 2021 (4) SA 323 (CC) at paras [1] to [12], [23], [31] to [33], and especially paras [67] to [78] TABLE OF CONTENTS 1. Testate Law 1.1 General introduction pg 1 1.2 Formalities for drafting a will pg 1 – 2 1.3 Vesting pg 2 1.4 Incompetency to inherit pg 2 – 3 1.5 Revocation of a Will pg 3 1.6 Effect of divorce on your Will pg 3 - 4 1.7 Beneficiaries refuse / unable to inherit pg 4 1.8 Clauses in a Will pg 4 – 6 1.9 Amending a Will pg 6 1.10 Living will pg 6 – 7 2. Intestate Law 2.1 General introduction pg 7 2.2 Intestate succession pg 8 3. Deceased Estates 3.1 General introduction pg 8 3.2 Ranking in the dissolution of a deceased estate pg 9 3.3 Effect of marriages on a deceased estate pg 9 – 10 3.4 Consultation pg 10 - 11 3.5 Steps involved in the winding up of a deceased estate pg 11 – 15 3.6 Drafting of the Liquidation and Distribution Account pg 15 – 25 4. Annexure A – Example of a Will pg 26 – 31 5. Annexure B – Example of a Codicil pg 32 6. Annexure C – Examples of intestate succession pg 33 – 37 7. Annexure D – Example of a Redistribution agreement pg 38 – 39 8. Annexure E – Example of a Liquidation and Distribution account pg 40 – 52 1. TESTATE LAW 1.1. General introduction In South Africa there exists only two means through which an individual’s assets can devolve upon his / her death. An individual estate is either wound up through testate law or intestate law. Simply put, you either die with a valid Will, or you die without a valid Will. Testate law is applicable when a person dies with a valid Will. This may be in the form an individual’s Will or through a joint Will containing the Wills of two or more persons set out in one document. In South Africa, we have freedom of testation, which means that we have free reign in determining which beneficiaries should inherit from our deceased estate. The content of your Will is up to each person’s own discretion. You may elect whichever beneficiaries you wish to inherit in your estate. In some instances, a Will even imposes conditions on a beneficiary before they may inherit. Freedom of testation allows a testator to decide who inherits their estate, subject to the Will not being illegal, immoral, impossible, or contrary to public policy or the Constitution. Conditions in a Will that attempt to impose illegal, immoral, or impossible requirements on a beneficiary are void and unenforceable. Thus, there exists a balancing act in our law between freedom of testation and Wills that are contrary to public policy. Please read the case of Wilkinson & Another v Crawford NO and Others 2021 (4) SA 323, refer to par (1) – (12), (23), (31) – (33) and (67) – (78). In principle, as long as the content of your will is not illegal or immoral, one has free reign to leave your assets to whoever you wish. However, testate law does refer to a VALID Will and not just a Will. There thus exists certain formalities that must be complied with for your Will to be deemed valid. We will now consider those formalities. 1.2. Formalities for drafting a Will For a Will to be valid, it must comply with the following formalities. 1. The Will must be in writing 2. The Will must be signed by the testator (person 16 years or older). 3. The testator must initial each page and sign in full on the last page at the end of the Will. 4. The Will must be signed by two competent witnesses (persons 14 years or older). These witnesses need only sign on the last page at the end of the Will. 5. The testator as well as the two competent witnesses need to all sign the Will in one another’s presence. 6. In instances where a testator is unable to sign a Will or can only sign by means of making a mark, such a Will must also be commissioned by a Commissioner of Oaths, who must certify that they have satisfied themselves as to the identity of the testator and that the Will so signed is indeed the true Will of the testator. Please refer to section 2 of the Wills Act 7 of 1953. Now we may come across Wills in our time as legal professionals that do not strictly adhere to the formalities as mentioned above. Perhaps there exists only one competent witness to the Will instead of the required two witnesses. On the face of such a document, we have an invalid Will. However, one could still approach the High Court seeking a court order that declares the Will valid. Section 2(3) of the Will’s Act provides for a “rescue provision”. The High Court may accept the validity of any Will that does not comply with the required formalities, on condition that the Court is satisfied that the Will reflects the true intention of the testator. Please note that following this procedure may be an expensive and time-consuming task for your client with no guarantee of success, hence it is always best to ensure that the Will strictly complies with the above formalities to avoid any unnecessary and lengthy legal procedures. Please read the following cases: Van der Merwe v The Master and Another 2010 (6) SA 544 (SCA), refer to par (14) – (19) Delport v Le Roux 2022 ZAKZD 51 1.3. Vesting Unless clearly stated otherwise in a Will, every bequest is presumed to be unconditional. Vesting of a beneficiary’s right to inheritance occurs immediately upon the death of the testator. However, actual possession or enjoyment of the inheritance may only occur once the Liquidation and Distribution account has lain open for inspection and the estate has been administered. Reference is made hereto under step six in the steps involved in the winding up of a deceased estate. 1.4. Incompetency to inherit In certain instances, beneficiaries to a Will may be deemed incompetent or ‘disqualified’ from inheriting. This may stem from any of the below actions; - Beneficiaries who are considered blameworthy for the deceased’s death either through intentional, unlawful, or negligent actions (de bloedige hand erft niet). (See : Ex Parte Steenkamp and Steenkamp 1952 (1) SA 744 (T)) - Beneficiaries who exerted undue influence over the testator may be disqualified from inheriting, and any affected provisions may be set aside. (See : M.E.K and Another v Pokroy N.O and Others [2024] ZAGPPHC 862 (26 August 2024). - Beneficiaries who committed fraud in the drafting of a Will. - Beneficiaries who signed as a witness to the testators Will or drafted the testators Will on their behalf. This is particularly important as any beneficiaries to a Will should not be seen as being in a position of possible influence over the testator when the Will is drafted. 1.5. Revocation of a Will It is important to ensure that upon your passing there exists only one valid Will that governs the dissolution of your estate. It can be a nightmare where there exists more than one valid Will as they could possibly contradict one another making the dissolution of the estate virtually impossible. It is important to ensure that when a new Will is drafted, your previous Will should be revoked to ensure that it is no longer valid. A Will may be revoked in one of the following manners; - The High Court may deem a Will revoked if the Court is satisfied that the Will does not reflect the true intention of the testator. - If the Will is destroyed by the testator. - If the testator created a new Will that contains a revocation clause that revokes all previous Wills (it is important that we include revocation clauses in the Wills that we draft). Please refer to section 2A of the Wills Act 7 of 1953. 1.6. Effect of divorce on your Will This section deals with marriage and divorce and certain assumptions that apply thereto. It is assumed that upon termination of marriage through divorce, the parties thereto would no longer wish to have one another as beneficiaries to their Wills. The assumption applies as follows: Should the ex-spouse pass away within three months of date of divorce, it is assumed that they have not had sufficient opportunity to amend their Will (to thus exclude / disinherit the spouse from the previous marriage) and thus the spouse from the previous marriage will be excluded from inheriting. Upon divorce, Section 2B of the Wills Act 7 of 1953 automatically excludes the former spouse from inheriting under a Will. Any previously mentioned ‘three-month assumption’ is not statutory and should be disregarded. However, should the ex-spouse pass away later than three months of date of divorce, it is then assumed that they have had sufficient time to amend their Will, and the ex-spouse will now inherit should they have been included in the Will. It is thus assumed that three months is sufficient opportunity to amend your Will to exclude your previous spouse after divorce, and failure to do so within those three months creates the assumption that you in fact do still intend for your ex-spouse to inherit from your estate. Please refer to section 2B of the Wills Act 7 of 1953. 1.7. Beneficiaries refuse / unable to inherit Please refer to section 2C of the Wills Act 7 of 1953. This section deals with beneficiaries who renounce their inheritance or are unable to inherit from a deceased estate due to death before the Testator or disqualification. Section 2C(1) stipulates that should a beneficiary to the Will renounce their inheritance, their inheritance will be vested in the surviving spouse of the deceased. If there exists no surviving spouse, then the inheritance will be distributed equally amongst the remaining heirs. Section 2C(2) stipulates that should a beneficiary to the Will be pre-deceased or disqualified from inheriting, their inheritance will be vested per stirpes in their descendants. Please note that the term ‘descendants’ refer to the biological as well as adopted children of the deceased. If there exist no descendants to the deceased or disqualified, then the inheritance will be distributed equally amongst the remaining heirs. 1.8. Clauses in a Will Now when it comes to drafting a Will for your client, it is difficult to say that the content of the Will is wrong as in essence we all have freedom of testation and as long as your Will complies with the formalities and its content is not illegal or immoral then you will have a valid and binding Will. However, it could be said that a certain Will is ‘better’ than another Will. By having a fundamental understanding of the Wills Act one can actually advise your client on many alternative aspects to consider in their Will. Remember, majority of clientele has approached you because they wanted a binding document that stipulates who should inherit whichever asset when they pass away one day, but there is a lot more factors that one should consider when drafting a Will and it is your duty to advise your client and open your clients mind up to various clauses in their Will that would add value and assist with the dissolution of their estate in accordance with their own desires. Below are some important clauses to consider when drafting a Will. - Heading – Each Will must display the full name and surname as well as the identity number of the Testator - Revocation – The testator may elect to revoke any previous Wills through the revocation clause - Appointment of Executor – The testator needs to elect a person to wind up their deceased estate. The full names and surnames as well as the identity number of the appointed Executor must be displayed herein. In terms of Section 52 of the Administration of Estate’s Act 66 of 1965 an Executor may not substitute or surrogate any other person to act in his / her place. - Power of Assumption – This clause may give the Executor the discretion to appoint any other professional person to assist them in the winding up of the deceased estate and thus allow for remunerating them from the funds available in the deceased estate. For example, to successfully wind up the deceased estate you might require the assistance of Accountants if the deceased owned shares in a company or perhaps the assistance of an Actuary if future maintenance claims against the estate needs to be calculated. - Beneficiaries – This refers to the persons who shall inherit from the deceased estate. Such persons are divided into two categories namely; • Legatees, which refer to beneficiaries who are to inherit something specific from the estate, and • Heirs, who will equally share in the residue of the deceased estate. - Fideicommissum - This entails the passing down of an asset to two successive beneficiaries. The first beneficiary will be the bona fide possessor/user of such an asset during their lifetime (unless the fideicommissum is restricted to a time period). The second beneficiary will become the owner of the asset upon the first beneficiaries passing. This clause allows a beneficiary to ensure that an asset (for example, a house) is kept within the family for at least two generations. It is not valid to attempt to dictate the transfer of ownership over an asset beyond the second beneficiary. - Exclusion from marital regime – This clause may be inserted into a Will for purposes of ensuring that the beneficiaries to your Will are able to inherit from you without the legal obligation of having their inheritance subject to their matrimonial regime. In other words, the inheritance will not form part of their estate from a marital claim perspective, and they will thus not need to share in their inheritance with their spouse. - Guardianship - Where minors are involved, the parent may elect to appoint a guardian to take care of such children. - Funeral Direction - The testator may wish to indicate a preference as to whether they wish to be buried or cremated. The testator may also choose to elect as to whether they wish to donate any of their bodily organs upon their passing and must indicate which institution is to receive such bodily organs. - Collation - This clause is only inserted should the testator not wish for collation to apply as it applies automatically in terms of the Wills Act. Collation is an assumption that a testator would want to benefit all their children, equally. Such assumption infers a consideration of ensuring that all children were also equally benefitted during the testator’s lifetime as well. In theory collation ensures financial equal treatment of the children of the deceased, however, from a practical perspective, it may result in disputes between the children with regard to financial benefits they derived from the deceased during their lifetime. Hence, your client may wish to specifically exclude collation from their Will. - Testamentary Trust - This is applicable in instances where the beneficiaries of a Will include minor children. Such inheritances should be protected in a Trust until the minors qualify to receive their inheritance upon reaching majority. No person may claim their inheritance unless they have at least reached the age of 18 years. The testator is required to appoint three Trustees who will manage the Trust in the best interest of the beneficiaries (minor children). The testator must also elect as to when the Trust should be terminated, in other words the testator may decide upon which age the minor children should receive their inheritance. This could be at any age, for example at 25 years of age, but not younger than 18 years of age. Furthermore, the testator should also clearly set out the guidelines and the rules that need to be followed by the appointed Trustees when managing the Trust in the best interests of the beneficiaries. Please refer to the Trust Property Control Act 57 of 1988. - Be mindful that should the testator not agree with the applicable principles that apply under Testate Law or the provisions of the Wills Act, such as Section 2B and 2C of the Wills Act, same will need to be addressed and amended in the testator’s Will. Ultimately you are not restricted to the above clauses, you may add any clauses in your Will that your client requires. Please see Annexure A to this Guide for an example of a draft Will. 1.9. Amending a Will Should your client wish to make slight amendments to their Will (instead of revoking the Will and drafting a new one) it would be considered valid to simply delete certain clauses in your Will and subsequently thereto amend the clauses in writing on your existing Will as long as you remain compliant with the formalities of drafting a valid Will, meaning you need to sign next to the amendment together with and in the presence of two competent witnesses. However, it is advisable to rather draft a Codicil instead of manually amending your Will as this would look neater and more professional as well as eliminate possible unnecessary disputes regarding fraud. If a testator wishes to make any amendments to their Will, the testator may draft a Codicil to affect such an amendment instead of drafting a new Will in its entirety. A Codicil will serve as an Addendum to your current Will, and the content thereof carefully sets out which clauses in your Will the Testator intends to amend together with the amended version thereof. Please see Annexure B to this Guide for an example of a draft Codicil. 1.10. Living Will Please refer to the National Health Act 61 of 2003. In accordance with this particular Act, the following is noteworthy; - The Act requires consent for medical treatment and allows the public to participate in healthcare decisions. - It also allows for medical patients to appoint someone to make healthcare decisions on their behalf if they are unable to do so – this is where the Living Will may be of consequence. Living wills in South Africa are not explicitly legally binding. They serve as guidance for healthcare providers and proxies when the patient cannot express consent, under Section 7 of the National Health Act 61 of 2003. Their enforceability in court is not guaranteed, and they should be treated as advisory documents only. In essence, this is a document whereby a person may indicate which type of medical treatments they do not consent to. A person may also elect to not be kept alive by artificial means when they are unable to verbally express their instructions. A person may also indicate as to whether they wish to not be resuscitated at any point in time. Example of a living will clause It is my wish that in the event of my physical condition being such that there is little or no prospect of me regaining my health in order to live a reasonable lifestyle, my life shall not be prolonged by artificial means, and I should be given appropriate medication to relieve me of my pain during my last days, even if it expedites my death. Thus, done and signed in Pretoria on 17 July 2025 by the testator and the undersigned witnesses, all being present at the same time. Testator Witness One Witness Two 2. INTESTATE LAW 2.1. General introduction This section is governed by the Intestate Succession Act 81 of 1987 and deals with circumstances where a person passes away without a valid Will. Please refer to the Intestate Succession Act 81 of 1987. There are certain guidelines that need to be followed when establishing who is entitled to inherit in terms of Intestate Law. Intestate succession applies to the deceased’s surviving spouse(s), descendants (including adopted children), parents and other relatives as determined in terms of the Intestate Succession Act 81 of 1987. 2.2. Intestate succession The following guidelines should be adhered to: - The surviving spouse and children of the deceased inherit first (after any marital claims have been considered and allocated). Take note that children include any adopted children as well. In terms of Customary Law, any child who was accepted by the deceased person as their own child, shall enjoy the same rights as adopted children. Take note that the inheritance of the deceased person is divided amongst the surviving spouse and children equally, however, the surviving spouse is entitled to the greater of a child’s share or the statutory amount (currently R250 000, subject to amendment by regulation). In instances where the deceased was married in terms of a polygamous customary marriage, each surviving spouse is entitled to the greater of a child’s share or the statutory amount, and the calculation of a child’s share must take into account the number of surviving spouses. - If the deceased was unmarried and had no children, then the deceased person’s surviving parents are next in line to inherit. Each surviving parent is entitled to half of the estate. If one or both deceased’s parents have passed, then you will need to consider the next paragraph. - Next in line to inherit are the siblings, which include the brothers, sisters, half-brothers and half-sisters of the deceased. Such siblings inherit through the parents of the deceased (thus their own parents). Thus, where one of the parents, in terms of the above guideline have pre- deceased, the blood-related descendants of such parent will be next in line to inherit. Thus, the children of the mother of the deceased will inherit equally in the mother’s half share and the children of the father of the deceased will inherit equally in the father’s half share. Hence the descendants related to both parents will inherit from each parent whilst the descendants related to only one of the parents (in other words the half-brother / sister of the deceased) will only inherit a portion through the parent that they share blood with. It is only in instances where the deceased person has no siblings that a single surviving parent of the deceased may inherit the entire inheritance. - If no surviving spouse, children, parents and siblings then next in line to inherit are the nearest blood relatives of the deceased. - In instances where there are no blood relatives that lay claim to the deceased estate, the estate will be placed in a Guardian’s Fund. If no heirs are found, the estate devolves to the State as bona vacantia. If no one claims the inheritance after a period of 30 years, then it is forfeited to the State. Take note that unclaimed deceased estates are advertised annually in the Government Gazette. Please also consider s2C of the Wills Act 7 of 1953 when dealing with intestate law. Please see Annexure C to this Guide for practical examples of intestate succession. 3. DECEASED ESTATES 3.1. General introduction Please refer to the Administration of Estate’s Act 66 of 1965 as the process of winding up a deceased estate is governed by this Act. This Act should be of particular importance to those of you who wish to be appointed as executors of a deceased estate and are thus tasked with the important duty of winding up a deceased estate. The ability to wind up a deceased estate as the appointed executor thereof does indeed come with financial reward, an executor is entitled to remuneration in terms of the prescribed tariff (currently 3.5% of the gross value of assets and 6% of income collected after death), unless the Will provides otherwise or the Master directs differently. You may be appointed as the Executor of a testate estate as a result of being nominated as the Executor in the Will under the Executor clause or you may be appointed as the Executor of an intestate estate as a result of the family members of the deceased approaching and nominating you as the Executor of the intestate estate after the death of the deceased. 3.2. Ranking in the dissolution of a deceased estate From the outset it is important to understand that there exists a ranking in the dissolution of a deceased estate. In other words, a deceased estate is wound up by considering the following factors as per the below order of preference; - Creditors of the deceased estate. Creditors are ranked first, and provision will first need to be made for the payment of the creditors of the deceased estate. - Marital regime of the deceased. We will now need to consider whether the deceased was married as well as whether there exists a marital claim for or against the estate. - Lastly, we will consider the content of the Will of the deceased or the rules of intestate succession should the deceased have passed without executing a valid Will. In reality it may occur that the wishes of the deceased in their Will become irrelevant as there are simply no assets remaining in the estate after the creditors have been paid and / or the marital claim has been calculated. It is thus always advisable to do estate planning to ensure that there exist sufficient assets in your estate to ensure that your testamentary wishes can be realised. 3.3. Effect of marriages on a deceased estate As noted in the above paragraph, your marriage regime may have an impact on your deceased estate. Importantly, neither your Will nor the provisions of intestate succession can override a person’s marital claim. Keep in mind that the deceased’s marital regime may impact the deceased estate in the following manner; - If married in community of property – the surviving spouse is entitled to their half share of the joint estate before distribution. Remember this is not an inheritance but rather a legal claim to ownership of half the estate. - If married out of community of property without the accrual system – the surviving spouse has no marital claim to the deceased estate unless ordered otherwise by a Court of Law. - If married out of community of property with the accrual system – the surviving spouse may have a marital claim against the deceased estate; however, the deceased estate may also have a marital claim against the surviving spouse. This is dependent on whose estate grew the most during the subsistence of the marriage, as the idea here is that both parties should benefit equally in growth during the marriage. Accrual claims arise upon dissolution of a marriage, whether it be through divorce or death. Should the deceased have accumulated more wealth as compared to the surviving spouse during the subsistence of their marriage then the deceased estate will need to pay over half of that wealth to the surviving spouse when winding up the deceased estate, however, should the surviving spouse have accumulated more wealth as compared to the deceased during the subsistence of their marriage then the surviving spouse will need to pay over half of that wealth into the deceased estate. Remember in terms of the accrual system, the parties to the marriage only share in asset growth during the subsistence of their marriage and DO NOT share in the liabilities of one another. - With regard to Customary marriages – all marriages concluded after 2 December 1988 are automatically in community of property unless an antenuptial contract has been entered into. Customary marriages concluded after 15 November 2000 (commencement of the Recognition of Customary Marriages Act 120 of 1998) are automatically in community of property unless an antenuptial contract is concluded. It is common that multiple spouses are involved in customary law marriages. It is however recommended that customary law marriages are registered at Home Affairs so that an estate plan can be drafted, which clearly stipulates what each spouse will inherit. Polygamous marriages are out of community of property; however, no single wife is excluded when dividing the estate with specific reference to housing property, family property and personal property. Furthermore, customary marriages entered into after the commencement of the Recognition of Customary Marriages Act require a court-approved contract regulating the matrimonial property system. Please refer to the following Acts: Recognition of Customary Marriages Act 120 of 1998 Reform of Customary Law of Succession and Regulation of Related Matters Act 11 of 2009 3.4. Consultation As the executor of a deceased estate, your first consultation with the family of the deceased is an important one for purposes of gathering all the necessary information you will need to wind up the deceased estate as well as carefully explaining to the family members the various steps you will need to follow in order to successfully wind up the deceased estate. When consulting with the deceased family be sure to obtain the following information from them: - Was the deceased married? You will require proof of such marriage - Enquire as to which assets are owned by the deceased? Including immovable property, movable property, bank accounts and any policies that may pay into the deceased estate. Proof of ownership is also necessary. - Ensure that you have the original Will where applicable. - Obtain proof of death of the deceased through a death certificate. - Ask the family as to whether they are aware of any possible creditors that the deceased may have? - Obtain the identification documents of the deceased as well as the beneficiaries to the estate. 3.5. Steps involved in the winding up of a deceased estate Step One: You will need to report the deceased estate to the Master’s Office in order to obtain a Letter of Executorship. An Executor may not perform any duties in winding up the Deceased Estate until such letter of Executorship has been obtained. The following documents need to be submitted to the Master’s Office when reporting the Deceased Estate: - J294 Death Notice – in this document you will need to provide the Masters office with certain details of the deceased. - J243 Inventory – in this document you will need to provide the Masters office with a list of all the assets in the deceased estate together with a valuation of those assets. - J155 Undertaking and Acceptance of Masters directions by the Executor – in this document you as the Executor of the deceased estate formally undertake to administer the estate of the deceased. - J190 Acceptance of Trust as Executor – in this document you provide the Masters office with certain details of yourself as the Executor of the deceased estate. - Affidavit to the Masters office declaring that to the best of your knowledge no other letter of executorship has already been granted to another person over the deceased estate. - Death Certificate of the deceased proving the death of the deceased. - Marriage declaration confirming the marriage regime of the deceased at time of death together with proof thereof. This may be in the form of a marriage certificate and/or Antenuptial Contract and/or affidavit confirming a Customary Law marriage. - The original Will, or in the event of a person passing intestate, we will need to supplement the Will with a J192 next of kin affidavit as well as a nomination to act as executor form. It is worth noting that when a person passes away with a valid Will, the content of such Will clearly informs the Masters office as to whom was appointed as executor over the deceased estate as well as to who has been nominated as the beneficiaries of the deceased estate. If you are dealing with an intestate estate, this information is not available to the Masters office. Hence, we are required to draft a next of kin affidavit which sets out the surviving family members of the deceased (spouse, children, parents, siblings, etc) so that the Masters office can ensure that you are correctly devolving the estate in terms of intestate succession. Furthermore, the nomination to act as executor form is the formal document whereby the beneficiaries of the deceased estate appoint you as Executor of the intestate estate. - Identity documents of the beneficiaries to the estate, identity document of the Executor and birth certificates of the children of the deceased. Section 18(3) applies where the value of the estate does not exceed the prescribed threshold (currently R250 000, subject to amendment by regulation). In such instances the Master will issue the Executor with a Letter of Authority and not a letter of Executorship. The following persons may not be an Executor of a Deceased Estate: - Minors - Unrehabilitated Insolvents - Mentally disabled person - Persons disqualified in terms of section 54 of the Administration of Estates Act 66 of 1965, including minors, unrehabilitated insolvents, persons of unsound mind, and persons declared incapable by a court It is also important to note that once you have reported the deceased estate to the Masters office, the Masters office may (in addition to the above-mentioned documents) also require the Executor to furnish security (an executor bond) to the Masters office. This bond acts as a financial guarantee to the beneficiaries and creditors of the deceased estate that provision has been made to cover any financial losses incurred by the estate in the event of any mismanagement of the estate by the executor (which leads to financial damage). There are several insurance companies that you as Executor can approach in order to obtain and provide such an executor bond to the Masters office. In certain circumstances the Legal Practitioners Indemnity Insurance Fund may also assist with such a bond. Step Two: Open a Deceased Estates bank account at the bank of your choice. This is only necessary where the deceased has more than a R1 000.00 cash available (including money in their bank accounts). As the executor of a deceased estate, it is crucial that you are the only person that has control over the finances of the deceased. You will be required to close all the existing bank accounts of the deceased and transfer all the cash in the deceased estate to the deceased estate bank account that you opened. All policies or investments due and owing to the estate will also be paid into the deceased estate bank account opened by the executor. Once you have opened the deceased estate bank account it is advisable to make an appointment at your nearest SARS branch for purposes of registering the death of the deceased with SARS as well as filing any outstanding annual tax returns due and owing by the deceased. Step Three: Establish who the creditors are of the Deceased Estate. In terms of section 29 of the Administration of Estate’s Act 66 of 1965, a notice to creditors will need to be done. The Executor will need to place an advertisement in the Government Gazette and the local newspaper calling upon all creditors of the deceased to prove their claim against the Deceased Estate in not less than 30 days from date of advertisement. This advertisement in the local newspaper must be placed in the area in which the deceased resided at any time within the period of twelve months immediately preceding the date of his / her death. If the deceased resided in more than one area during such time, the advertisement would also need to be placed in the newspaper in those districts. If the deceased was not an ordinary resident in the Republic, then the advertisement will need to be placed in a newspaper circulating in the district where the deceased owned property. This step is vital for determining who the creditors are of the deceased estate. From a practical perspective, one could also contact the creditors that you are able to identify for purposes of notifying such creditors that you have attended to the s29 advertisement and that they should lodge their claim. This may assist in avoiding any claims against the estate beyond the 30 days. Step Four: Draft the Liquidation and Distribution account. We are now able to draft this account as we are in possession of all the necessary information required for drafting this account which includes the assets in the estate, the creditors of the deceased, the marital regime of the deceased and the contents of the deceased’s Will or alternatively the beneficiaries of the deceased who will inherit in terms of intestate succession. The Liquidation & Distribution Account comprises of the following accounts: - Liquidation account – this account sets out the assets and liabilities of the Deceased Estate. The purpose of this account is to determine the nett value of the Deceased Estate which is referred to as the balance available for distribution. - Estate Duty account – this account determines whether or not the Deceased Estate will need to pay additional tax upon death. This is a final tax assessment on the deceased’s accumulated wealth before it is distributed to the heirs of the estate and is generally only payable by persons with rather wealthy estates. - Recapitulation account – this account calculates how much cash is available in the Deceased Estate and whether such cash is sufficient to pay those who must be paid with cash, for example, liabilities, estate duty and any possible cash legatees. - Distribution account – this account reflects how the remainder of the deceased estate is to be distributed. In essence, whatever assets are remaining in the deceased estate after the creditors have been paid, will be distributed in this account. - Income and Expenditure account – this account determines whether the Deceased Estate made or lost money after date of death of the deceased. An estate cannot gain assets nor enter into liabilities after date of death, however, an estate can make money or lose money after date of death, for example, interest earned in savings in a bank account or bank charges accumulated therein post date of death. Deceased estate bank accounts are interest bearing so in theory there should be additional interest that the deceased estate will accumulate post date of death. - Fiduciary Asset account – assets subject to a Fideicommissum are reflected in this account. - Executor’s Certificate – this is written confirmation by the Executor that all the information in the Liquidation and Distribution account is true and correct. A further practical explanation and example on drafting the Liquidation & Distribution account will follow in this Guide. Take note that this step needs to be completed within six months from obtaining the letter of Executorship, failing which the Executor will need to write to the Master’s Office requesting an extension on the time period and explaining the reasons for such extension in time required. Once the Liquidation & Distribution Account has been finalised, please proceed to serve the account on the Masters office for purposes of obtaining approval of the account and permission to commence with the next step. Step Five: Section 35 of the Administration of Estate’s Act 66 of 1965 now dictates that another advertisement will need to be placed in the Government Gazette and local newspaper notifying all interested parties that the Liquidation & Distribution account is going to lie open for inspection for a period of 21 consecutive days at the office of the Master. If the deceased was an ordinarily resident in any district other than that in which the office of the Master is situated, a duplicate thereof shall also lie open at the office of the Magistrate of such other district for not less than 21 consecutive days. This will allow any Creditors of the Deceased Estate to inspect the account and ensure the correctness thereof. Should a Creditor or Beneficiary believe that an error was made in the account, they may proceed to object thereto. If the objection is valid, you will then be required to amend the Liquidation & Distribution account and proceed to re-advertise the account for inspection. Step Six: The Executor will now proceed to distribute the estate in accordance with the Liquidation & Distribution account. Payment will need to be made to all the creditors who lodged a claim against the estate (including SARS for any possible outstanding income tax and estate duty). You will then proceed to distribute the remaining assets in the estate in terms of the marital regime and to the appointed beneficiaries (this may include cash transfers as well registering immovable property and vehicles to the names of the appointed beneficiaries) and of course you are also entitled to claim your remuneration for winding up the deceased estate. Thereafter and upon finalisation of such distribution, the Executor will show / prove to the Masters office that the estate has been distributed in line with the approved Liquidation & Distribution Account so that the Master can issue the Executor with a filing slip confirming the completion of the winding up of the Deceased Estate. 3.6. Drafting of the Liquidation and Distribution Account To commence the Liquidation & Distribution account you will need to draft the heading. Here are some examples on how to draft the heading: Unmarried person First and Final Liquidation and Distribution Account in the estate of the late xxx who died on xxx with identity number xxx and who was unmarried at the time of his death. Masters reference number: xxx/2026 (Pretoria) Married in community of property First and Final Liquidation and Distribution Account in the estate of the late xxx who died on xxx with identity number xxx and who was married in community of property to xxx (born xxx) with identity number xxx Masters reference number: xxx/2026 (Pretoria) Married out of community of property with the accrual system First and Final Liquidation and Distribution Account in the estate of the late xxx who died on xxx with identity number xxx and who was married out of community of property with the inclusion of the accrual system Masters reference number: xxx/2026 (Pretoria) Liquidation Account In this account we are calculating the nett value (balance available for distribution) of the deceased estate. In other words, we are establishing what is left in the deceased estate after all the liabilities (creditors - including estate duty) has taken their claim against the estate. Remember creditors are ranked number one. In order to achieve the nett value of the estate we shall firstly add up all the assets in the estate for purposes of ascertaining the gross value of the estate. Thereafter, we shall deduct the liabilities of the estate as well as the estate duty to establish the nett value of the estate. Tips when drafting the assets in the Liquidation account: - Assets are divided into the categories of immovable property / movable property / claims in favour of the estate. - Immovable property includes the deceased’s: • primary residence, • holiday home, • investment property, • farming property. - Movable property refers to assets like: • motor vehicles, • furniture, • firearms, • shares, • farming implements, • possibly even ownership over gold / Kruger rands. - Claims in favour of the estate typically refer to money due, owing and payable to the deceased estate bank account such as assets like: • money in the deceased persons bank account, • life policies or investments paying into the estate, • money due and owing to the estate from a third party. - All assets in the Liquidation Account need to be properly described. It is important to note the type of asset, for example, whether it’s a non-cash or cash asset. (please fabricate the description of assets in an exam where the full description is not provided). - If you are dealing with a tangible asset, in other words, if the asset is not cash and has not been sold for cash then the asset will be awarded in the Liquidation account to the beneficiary who is entitled to inherit the asset. Importantly, because the asset is not in the form of cash, you will also need indicate who valued the particular asset. - If an asset is sold for cash, then it is realized. - If an asset is already cash, then it is collected. For example, money in bank accounts, policies or investments paying into the deceased estate. - When the question states that an asset is worth X amount, but that the asset was sold for Y amount – we always use the sold (realized) price in the Liquidation Account as this resembles the true amount that we received for the asset. - When the question states that you have X amount in the bank upon date of death, and then goes on to say that after date of death the amount in the bank changes (it may increase as a result of interest or decrease as a result of bank charges) – then the date of death value in the bank account is always for the Liquidation Account (as this is the asset owned by the deceased as per date of death) and the difference that accumulated after date of death is for the income and expenditure account. - Please keep in mind that agricultural land may not be inherited by more than one person, unless you have obtained special consent from the Minister of Agriculture. Please refer to the Subdivision of Agricultural Land Act 70 of 1970. In such circumstances where the testator desires to transfer the agricultural land to more than one beneficiary it may then be advisable to rather sell (realize) the agricultural / farming property so that the cash obtained from the sale can be divided amongst the legatees / heirs. Perhaps during the lifetime of the deceased, it may be advisable to transfer the farming property to a Trust and appoint the proposed beneficiaries as beneficiaries to the Trust or transfer the farming property to a private company so that you can appoint your proposed beneficiaries as legatees to the shares in the company in your Will. - Pension funds benefits do not generally form part of the deceased estate for distribution purposes but may be included for estate duty purposes in certain circumstances. They are paid directly out to the appointed beneficiaries in the fund or annuity. In rare circumstances where no beneficiary was appointed, it may occur that the fund or annuity is paid directly into the deceased estate. Please refer to section 37C of the Pension’s Funds Act 24 of 1956. - Remember that any shares in a company owned by the deceased will need to be properly valuated as required by SARS. Private company shares are valued by auditors and approved by the Chief Revenue Inspector whilst public company shares are valued by stockbrokers. - In general, life policies over the deceased life do not form part of the deceased estate as they are paid directly to the beneficiaries of the policy upon the passing of the deceased. However, there may be instances where life policies will form part of your liquidation account: • Life polices over the deceased life with no nominated beneficiary will need to pay into the deceased estate and will thus be reflected as an asset as no specific person was nominated to receive the life policy. • Life policies taken out by the deceased for purposes of covering any outstanding debt on their home loan will also need to be reflected as an asset in the deceased estate and the policy will set off against the liability of the home loan which will be listed as a liability in the deceased estate. Remember a Liquidation & Distribution account is a full disclosure account, meaning you will always show the full value of the asset as well as the full value of the liability. • On the contrary, you may be faced with a situation where the deceased was the beneficiary of a life policy over another individual’s life. In such a situation it is important to note that if the life policy is cancelled by such an individual due to the death of the deceased (in other words the beneficiary of the life policy) then a surrender value will pay out into the deceased estate and thus be reflected as an asset. A surrender value refers to a portion of the contributions paid towards the life policy. - One would also need to consider as to whether there exist any pending legal disputes in the deceased estate. Should the deceased have instituted legal action against another party prior to their death you may be required to ensure finalisation of that case before finalising the Liquidation & Distribution account. Should the legal matter be successful it could possibly result in additional assets in the deceased estate in the form of cash received from the legal matter. As a general rule, the deceased must have reached litis contestatio (close of pleadings) in the legal case before their passing in order to allow you as the Executor to finalise the legal matter. There does, however, exist conflicting judgments in this regard. Please read the case of Ngubane v RAF 2022 (5) SA 231 (GJ), refer to par 27. - Please also note that it may occur that the beneficiaries to the deceased estate wish to redistribute their inheritances amongst one another. This is generally done informally between the beneficiaries; however, the beneficiaries must still receive assets of equal value as initially intended for them to inherit. However, if the beneficiaries wish to redistribute immovable property inherited amongst one another then a formal written redistribution agreement will need to be drafted. Such agreement will also need to be approved by the Masters office (and attached to the Liquidation and Distribution account) before formal transfer of the redistributed immovable properties can take place at the Deeds office. Please see Annexure D to this guide for an example of a draft redistribution agreement. Tips when drafting the liabilities in the Liquidation account: - Liabilities are divided into three categories, namely; administration expenses / creditors / estate duty. - Administration expenses refer to the natural expenses incurred when winding up a deceased estate. These expenses need to be paid by the deceased estate in order for the estate to be wound up. Examples of administration expenses include: • bank charges, • s29 and s35 advertisement costs (the rates vary between different publications), • valuation costs, • commission costs, • transfer costs of immovable property, • executor fees and master’s fees. You may be required to calculate the executor’s fees and master’s fees in an exam. - An executor receives 3.5% of the total gross value of the deceased estate (the amount obtained by adding up all the assets in the liquidation account). - Master’s fees are calculated as follows: • Estates of a gross value under R250 000 are exempt from a Master’s fee • The Master is entitled to R600 for any Deceased Estates that have a gross asset value between R250 000 and R400 000 • The Master is entitled to a further R200 for every completed R100 000 of the gross asset estate value above R400 000 • The maximum fee a Master may receive is R7 000 (which will be reached in a Deceased Estate that has a gross asset value of R3.6 million) Example of calculation with gross value of R1 750 000: Up to R400 000 = R600 From R400 000 to R1 750 000 is thirteen completed amounts of R100 000 (R1 750 000 - R400 000 = R1 350 000 / 100 000 = 13.5), therefore 13 x R200 = R2 600 Thus, the Master receives R600 + R2 600 = R3 200 - Creditors refer to all the creditors who lodged their claim against the deceased estate upon attending to the s29 advertisement. This refers to any person or company that the deceased is indebted to, examples include: • banking institutions with bonds registered over immovable property or loans financed over vehicles, • clothing accounts, • outstanding income tax owed to SARS, • Reasonable funeral expenses • outstanding municipal bills, • maintenance owed to a surviving spouse or surviving children. - It is quite common for a deceased estate to have maintenance claims lodged as a creditor against the estate specifically in instances where the deceased person was maintaining a spouse and / or children. The surviving spouse and / or children may thus also lodge a future maintenance claim against the deceased estate insofar that such claim is reasonable, taking into account the amount available for distribution in the deceased estate together with a consideration of the financial needs and the age of the surviving spouse and children. Often an Actuary may be needed to be employed to calculate such fair and reasonable future maintenance claims. Please refer to the Maintenance of Surviving Spouses Act 27 of 1990. - Estate duty will now also need to be deducted as a creditor in the Liquidation Account. The estate duty account is a separate account, and you will now need to move over to your next account (estate duty) in order to calculate as to whether any additional tax is due and owing by the deceased estate to SARS. You will be required to complete your estate duty calculation and then return to the liquidation account in order to deduct the estate duty amount that was calculated. Now you are able to obtain the balance available for distribution (the nett value – in other words what is remaining in the deceased estate after all the creditors including estate duty have been paid). Total assets (gross value) less total liabilities less estate duty = Balance available for distribution (nett value). Should you encounter a situation in practice where the liabilities exceed the assets, you will then be dealing with an insolvent estate. In such a situation, please advise the preferential creditors of the insolvency so that they can direct you as to the next steps to follow. They may instruct you to revert to insolvency law. Estate Duty Account In this account we are required to follow a formula as provided to us by SARS for purposes of calculating as to whether the deceased’s estate was beyond a certain level of wealth which qualifies for paying additional tax. Keep in mind that we are taxed every time money changes hands and estate duty can thus be seen as tax on the deceased estate before the inheritance is devolved upon the beneficiaries (in other words before it changes hands). The formula is as follows: Property Plus Deemed property Less Allowable deductions Less s 4A Primary rebate (R 3.5 million) = Dutiable amount x 20% = Estate Duty Amount Tips for drafting the Estate Duty account: - In essence you will need to learn what comprises property, deemed property and allowable deductions as the remainder of the formula remains unaltered. - Remember in this account we are not devolving the deceased estate but rather simply following a formula in order to establish whether or not estate duty is payable. For majority of people there would be no estate duty payable as they would reach a negative figure (Nil) when calculating the dutiable amount. - Property refers to the gross value of the deceased estate (the asset total). We take this figure from the Liquidation account. There are certain factors that may influence the property value of your estate, these include: • If the deceased owned commercial farming property, then you may be entitled to a 30% rebate on the value of the immovable farming property (provided the farm is not sold in the course of winding up the deceased estate). • If the deceased owned shares in a private company that were sold by the executor at a different price to what the shares were valued at while winding up the deceased estate, then you will only be taxed on the value of those shares and not what they were sold (realized) for. For example, shares valued at R10 are sold by the Executor for R14 – you will not be taxed on the additional R4 profit you made on the sale of those shares for estate duty purposes. • Life policies taken out over the life of the deceased that did not have a nominated beneficiary (which is consequently paid into the deceased estate) will be excluded under the heading of Property and included under the heading of Deemed Property. • It must also be remembered that should the deceased have been married in community of property, then the half share owned by the surviving spouse must be deducted from the Property value of the deceased as one cannot be taxed on assets owned by your surviving spouse. Keep in mind that the surviving spouse does not share in the liabilities pertaining to the funeral expenses of the deceased. - Deemed Property on the other hand refers to the taxable property of the deceased that did not technically belong to the deceased at time of death. Examples of these include: • Life policies taken out over the life of the deceased that did not have a nominated beneficiary (which we excluded from Property). • Donations made into the deceased estate. We will discuss why donations may be made into the deceased estate under the recapitulation account. • Life policies taken out over the life of the deceased that does have a nominated beneficiary. In essence, if you take out a life policy and nominate someone as your beneficiary, you will still be liable to pay estate duty on the maturity value of the policy even though you are not the beneficiary thereto. - Allowable Deductions refers to certain reasonable deductions allowed in your estate duty calculation. Keep in mind that the more deductions that take place the higher the chance that your dutiable amount will be a negative figure meaning that no estate duty will be payable. Examples of allowable deductions may include: • Liabilities in the deceased estate such as the administration expenses and creditors. • Any charitable bequests made by the deceased estate. • Life policies taken out over the life of the deceased where the surviving spouse of the deceased was nominated as the beneficiary thereto. Thus, nominating your spouse as a beneficiary to your life policy will result in no estate duty payable as the maturity value of the policy is added under deemed property but deducted under allowable deductions. • Any inheritances bequeathed to your surviving spouse. - Primary Rebate refers to a tax-free allowance as per s4A abatement. This automatically applies to every person. The abatement is currently set at R3.5 million and this amount is always deducted in your estate duty calculation. This deduction assists greatly in reducing the amount of estate duty payable or alternatively in bringing the figure to zero. Furthermore, if a portion of the R3.5 million remains unused by the deceased for purposes of bringing the estate duty calculation to zero, then such unused portion will be transferred over to the surviving spouse of the deceased for purposes of increasing their s4A abatement above R3.5 million upon their death. - The Dutiable Amount is the sum total of your calculation. Property + Deemed Property – Allowable Deductions – s4A Rebate of R3.5 million = The Dutiable Amount. As previously mentioned, in most instances the total amounts to a negative answer, meaning there is no estate duty payable. - Where you obtain a positive dutiable amount, then 20% of such amount will give you the total estate duty payable. For example, a dutiable amount of R1 million will result in an estate duty liability of R200 000.00. Also keep in mind that in instances where the dutiable amount exceeds R30 million, then 25% of the portion exceeding R30 million together with 20% of the first R30 million will give you the total estate duty payable. - Please remember to insert the amount owing by the deceased on estate duty in your Liquidation account above so that you are now able to finalize your Liquidation Account and obtain your balance available for distribution (nett value). - Also keep in mind that in practice you will need to also complete the SARS Rev250 form and submit it to SARS once your estate duty calculation is finalised. Please refer to the Estate Duty Act 45 of 1955. Recapitulation Account In this account we are establishing the cash liquidity of the deceased estate. Beneficiaries will inherit whatever assets exist in the estate (tangible or cash) however, the liabilities (creditors) of the deceased will need to be paid in cash. We therefore need to ensure that there is sufficient liquidity in the estate so that all the creditors (including estate duty) can be paid in terms of whatever is owing to them. The Will of the deceased may also contain cash legatees, and we will thus need to also ensure that there is sufficient liquidity in the estate to pay such cash legatees. Tips for drafting the Recapitulation account: - Firstly, you will need to add up all the cash assets in the deceased estate in order to determine the total cash in the estate. This is easily done by referring to your Liquidation account. In the Liquidation account you would have described each of your assets and marked each asset as either ‘awarded’, ‘realized’ or ‘collected’. The assets marked as realized or collected refer to your cash assets. Thus, simply add up all the realized and collected assets. Note that in practice this is far less complicated as all the cash of the estate will be in your deceased estate bank account, thus you would already be aware of the total cash in estate before even drafting the Liquidation & Distribution account. - Thereafter you will deduct the total liabilities, any estate duty payable as well as any possible cash legatees from your available cash in the estate in order to establish as to whether you have a cash surplus (sufficient cash in the estate) or a cash shortfall. - A deceased estate cannot be successfully wound up if there is a cash shortfall in the estate. If you encounter such a situation in practice, you will be required to either sell (realize) certain assets in the deceased estate to ensure cash liquidity, alternatively, the beneficiaries may also donate money into the deceased estate should they prefer that the assets in the estate are not to be sold. - Remember, your job is to wind up the deceased estate in the best interests of the beneficiaries thereto so please communicate with the beneficiaries and take instruction regarding any possible sale of assets or donation into the estate. Distribution Account In this account we are going to distribute the balance available for distribution (the nett value of the estate taken from the Liquidation account) amongst the remaining beneficiaries to the estate. As per our ranking, the creditors and estate duty has already been accounted for in the Liquidation account. The marital regime of the deceased as well as the appointed beneficiaries are next in line and will be accounted for in the Distribution account. Tips for drafting the Distribution account: - Devolve the remainder of the estate in order of ranking. - Firstly, sort out any marital claim that the surviving spouse may have against the estate. Remember, when dealing with marriages in community of property, funeral expenses are liabilities of the deceased estate and are paid from estate funds before distribution. - When dealing with a testate estate, legatees will be considered next and thereafter the heirs will share equally in the remainder of the estate. - When dealing with an intestate estate, there are no legatees as nothing specific was bequeathed to any person through a Will. Thus, once the marital claim has been accounted for, the remainder of the estate will be divided equally amongst the heirs in terms of intestate succession. - When allocating inheritances to the various beneficiaries in this account, please also indicate the specific inheritance that they will be receiving, for example, Jane’s inheritance consists of a vehicle, furniture and cash. Income and Expenditure Account In this account we are establishing the total sum of all the additional income and losses incurred by the deceased estate post date of death of the deceased. All such additional income and losses incurred are not recorded in the Liquidation account as the Liquidation account refers to the assets and liabilities of the deceased and NOT additional income and losses incurred in the estate after date of death. Tips for drafting the Income and Expenditure account: - Firstly, add up all additional income accumulated in the deceased estate post date of death of the deceased. This may include: • Interest earned in the bank accounts of the deceased before the Executor closed those bank accounts as well as interest earned in the deceased estate bank account opened by the Executor. • Rental income earned on any investment property of the deceased post date of death where tenants were residing in the property. - Secondly, deduct any losses suffered by the deceased estate post date of death. Examples of such losses may be: • bank charges incurred in the bank account of the deceased post date of death. • Executors’ remuneration. The Executor is entitled to an additional 6% of any income derived from the deceased estate post date of death of the deceased. - Thereafter, whatever amount of income that remains must be distributed to the beneficiaries of the estate in accordance with the same manner of distribution that was followed in the Distribution account. Fiduciary Asset Account In rare circumstances you may also be required to draft this particular account. This account is reserved for instances where the deceased was the first beneficiary to an asset that was subject to a fideicommissum. In other words, the deceased was the first beneficiary (the fiduciary) to the asset and thus the bona fide possessor of the asset until such time of death. Upon death, the asset will need to be transferred to the second appointed beneficiary (the fideicommissary). Such asset cannot be listed in the Liquidation account of the first beneficiary (fiduciary) as the first beneficiary was never the owner of the asset, but rather the legal possessor thereof. Hence the asset will need to rather be listed in a Fiduciary asset account. Tips for drafting the Fiduciary Asset account: - You will list the asset that is subject to the fideicommissum in the account together with the market related value of the asset. - The transfer costs related to the transfer of ownership of the asset to the second beneficiary (the fideicommissary) as well as the Executors remuneration of 3.5% of the value of the asset will then need to be deducted. These deductions are referred to as ‘liabilities’. - Proceed to then indicate the details of the person who will now receive distribution of the asset (the fideicommissary). Executors certificate This is now written confirmation from the Executor that all the information reflected in the Liquidation and Distribution account is correct to the best knowledge of the Executor. Below is an example of the certificate: I the undersigned, (executor’s name), the appointed executor in the estate of the late (deceased name), estate number xxx/2025, declare as follows: 1. I confirm that the information represented in the Liquidation and Distribution Account is true and correct. 2. To the best of my knowledge and belief all the assets and income collected after date of death of the deceased has been disclosed herein. Please see Annexure E to this Guide for an example of a Liquidation and Distribution account. ANNEXURE A LAST WILL AND TESTAMENT OF JASON SMITH IDENTITY NUMBER: 910719 5281 083 I, Jason Smith, Identity Number: 910719 5281 083 declare this to be my Last Will and Testament. 1. REVOCATION CLAUSE: 1.1. I hereby revoke all my previous wills, codicils or other testamentary dispositions heretofore made by me. 2. EXECUTORSHIP 2.1. I nominate Joseph Dwebe (ID 890116 5296 081) who is my attorney to be the executor of my Estate. 3. COLLATION 3.1. I direct that no heir in terms of this Will shall be required to collate any amount and/or property which may have accrued to such heir during my lifetime. Collation shall not apply to any of my heirs. 4. POWER OF ASSUMPTION 4.1. The Executor is granted the power of assumption. The Executor is given the power to appoint any professional services that may be necessary for the purposes of successfully administering my deceased estate. 5. GUARDIANSHIP 5.1. In the event of the simultaneous death of my spouse Cecilia Williams, ID 931007 5328 084 and I, then I appoint Kevin Williams, ID 870327 5061 089 and Sarah Williams ID 881204 0051 082 to be the guardians of my children. 6. FUNERAL DIRECTIONS 6.1. It is my wish for my mortal remains to be cremated. 7. LEGATEES 7.1. I hereby bequeath R500 000.00 (five hundred thousand rand) cash as well as my vehicle (BMW x5 with registration number ZZ585GP) to my brother David Smith, ID 951129 5401 088. 7.2. I hereby bequeath R500 000.00 (five hundred thousand rand) cash to my daughter Lilly Smith, ID 190917 5438 080. 8. FIDEICOMMISSUM 8.1 I bequeath to my wife Cecilia Williams, ID 931007 5328 084, my house, namely: Erf 181, Registration Division, Province of Gauteng, Measuring 240 square metres in extent, Held by Deed of Transfer T11778/2018, subject to the condition that upon her death, the aforesaid property shall devolve upon our first-born daughter, Lilly Smith, ID 190917 5438 080. 9. HEIRS 9.1. I bequeath the remainder of my estate to my wife Cecilia Williams, ID 931007 5328 084 and my daughter Lilly Smith, ID 190917 5438 080, in equal shares, provided that should my daughter be under the age of 25 (twenty-five) years at the date of my death, her share shall devolve upon the Testamentary Trust created in terms of clause 10 below. 10. TESTAMENTARY TRUST 10.1. In the event of my death and my daughter being under the age of 25 (twenty-five) years I declare that a Testamentary Trust must be formed to preserve my estate for the benefit of my daughter and for purposes of maintaining my daughter. Upon my daughter reaching 25 (twenty-five) years of age, she will be entitled to the remaining Trust assets, and the Trust is thereafter to be terminated. 10.2. I appoint Kevin Williams, ID 870327 5061 089, Sarah Williams, ID 881204 0051 082 and Joseph Dwebe, ID 890116 5296 081 to be the Trustees of my Testamentary Trust. 10.3. I nominate my daughter Lilly Smith, ID 190917 5438 080 to be the beneficiary of the Trust. 10.4. Duties of the Trustees: 1. To expend money on the preservation, maintenance and enhancement of assets in the trust. 2. To take money in such amounts and upon such terms as they may determine for the purpose of discharging any liabilities of the trust or generally for the purpose of administering the trust. 3. The Trustees are given the discretion to invest the cash in low-risk investments or to place the cash in maturing policies. The Trustees are indemnified against any loss the trust suffers. The Trustees shall not be liable for any loss that is sustained in my trust or any beneficiary thereof by reason of the depreciation of value of any investments resulting from the retention or acquisition of or failure to sell or delay in selling those shares. 4. To institute and defend any proceedings in any forum and generally to do all things and acts, and sign all such documents and papers as may be necessary for the purposes of managing and administering the assets in the trust. 5. To employ attorneys, accountants and brokers and any other agents to carry out the objects and purposes provided for in the trust and to pay their fees, commission and remuneration and other charges. 6. To engage and pay for the services of independent contractors and tradesmen for the performance of work and rendering of services as they may deem necessary or incidental to the affairs or property of the trust. 7. To allow any person to occupy any immovable property or use any movable property forming part of the trust free of charge or at an agreed cost, charge or rental. 8. To enter into or cancel any lease and evict a lessee or any unlawful occupant from immovable property. 9. To enter into or terminate any service facilities, including landline telephone, mobile phone, satellite television, DSTV, internet and any other like service facilities as the Trustees may determine. 10. To sell assets in any manner that they may decide in instances where the selling of such assets will be for the benefit of the beneficiary of the Trust. 11. To determine whether any payment to a beneficiary shall be of an income or capital nature. 12. To capitalise unexpended income and pay any income tax accruing thereon and decide on the date of capitalisation. 13. To carry on or discontinue, as they deem fit, any business or partnership which forms part of the estate or trust. 14. To pay as an expense of the administration of the trust, the costs for transfer or delivery of any items bequeathed or awarded in specie to any heir, such costs to include packaging, transportation and insurance. 15. To enter into or terminate any contracts and do all things as they consider necessary or desirable in the interest of the trust. 16. To accept any gifts, donations, bequests or payments from any source whatsoever in favour of the trust. 17. To open or operate banking accounts in the name of the trust specifying by resolution the signatory powers on such amounts as they deem expedient from time to time. 18. To distribute any amount to any beneficiary whether such payment be of a capital or income nature by allocating the payment to the beneficiary. In paying out to any beneficiary any sum, whether of a capital or income nature, to make such payment either wholly or partially by transfer to the beneficiary concerned of any asset hereof, the value of which shall be agreed to by the trustees. 19. To appear before any Notary Public and execute any Notarial Deed. 20. To amend the terms of the trust in such a manner that they deem necessary or desirable that they give effect to the trust to ensure that the beneficiaries interests are protected at all times. 21. To resign on 30 (thirty) days written notice to the Master of the High Court. 11. INHERITANCE FREE FROM MARRIAGE REGIME 11.1. No benefit accruing to any beneficiary in terms of my Will, shall form part of their joint estate or any accrual regime of such beneficiary including any present or future spouse of theirs. All amounts paid to my beneficiary under this Will shall remain his/her sole property and no spouse of such beneficiary shall have any claim thereto. 12. INSOLVENCY 12.1. In the event of any heir’s estate being declared insolvent, such heir shall forfeit his/her right to receive his/her inheritance, and my Executor shall in his discretion retain the inheritance in trust and utilize such inheritance for the maintenance of such heir for as long a period as he considers necessary. IN WITNESS WHEREOF we have here unto signed at __________________ on this _________ day of ______________________ in the presence of the undersigned witnesses who in my presence and in the presence of each other have hereto signed as witnesses. ______________________ ______________________ WITNESS TESTATOR ______________________ WITNESS ANNEXURE B CODICAL I, Nadia Chetty, Identity number 850720 0018 095, hereby make the following codicil to my Will, executed at Johannesburg on 29 June 2017. I revoke paragraph 8 of the said Will, which reads as follows: My son, Brendon Chetty, ID 050820 0090 038, is to receive R300 000.00. Paragraph 8 of the said Will is hereby cancelled and substituted with the following: My son, Brendon Chetty, ID 050820 0090 038, is to receive R450 000.00. My said Will remains unaltered in all other aspects. Thus, done and signed in Johannesburg on 13 February 2025 by the testatrix and the undersigned witnesses, all being present at the same time. Testatrix Witness One Witness Two ANNEXURE C EXAMPLE 1: X dies intestate with an Estate Value of R1.1 million. X leaves behind the following people: • His wife Y to whom he was married in community of property, • His daughter A, • His adopted daughter B, • His son C, • His mother D. Answer Y = R 550 000.00 (Due to marriage in COP) Y = R 250 000.00 (R 250 000.00 greater than an Equal share) A = R 100 000.00 (Laws of intestate succession) B = R 100 000.00 (Laws of intestate succession) C = R 100 000.00 (Laws of intestate succession) EXAMPLE 2: X dies intestate with an estate value of R1.2 million. X leave behind the following people: • His wife Y, to whom he was married out of community of property with the exclusion of the Accrual system, • His brother A, • His daughter B, • His two granddaughters (C and D) from his pre-deceased son E. Answer Y = R 400 000.00 (Equal share is greater than R250 000) B = R 400 000.00 (Laws of intestate succession) C = R 200 000.00 (Share in E’s inheritance) D = R 200 000.00 (Share in E’s inheritance) EXAMPLE 3: X dies intestate with an Estate value of R 2 million. X leave behind the following people: • His mother A, • His two sisters B and C, • His half-sister D from his father’s side, • His two brothers E and F. Answer A = R 1 000 000.00 (half of the estate) B = R 200 000.00 (Laws of intestate succession) C = R 200 000.00 (Laws of intestate succession) E = R 200 000.00 (Laws of intestate succession) F = R 200 000.00 (Laws of intestate succession) D = R 200 000.00 (Laws of intestate succession) EXAMPLE 4: X dies intestate with an Estate value of R 1 million. X leave behind the following people: • His two brothers A and B, • His half-sister C from his mother’s side, • His two sisters D and E. • His uncle F Answer On mother’s side (R 500 000.00) A = R 100 000.00 (Laws of intestate succession) B = R 100 000.00 (Laws of intestate succession) C = R 100 000.00 (Laws of intestate succession) D = R 100 000.00 (Laws of intestate succession) E = R 100 000.00 (Laws of intestate succession) On father’s side (R 500 000.00) A = R 125 000.00 (Laws of intestate succession) B = R 125 000.00 (Laws of intestate succession) D = R 125 000.00 (Laws of intestate succession) E = R 125 000.00 (Laws of intestate succession) Thus, C only took once, while A, B, D and E took twice (from each parent) each receiving R 225 000.00 in total. EXAMPLE 5: X and Y are married out of community of property with the inclusion of the Accrual system. At date of marriage as per the antenuptial contract: X registered his worth at R 200 000 Y registered her worth at R 400 000 X passes away and an actuary calculates both spouses’ worth at termination of marriage: X is worth R 1.8 million at date of death Y is worth R 800 000 at the date of X death X leave behind the following people: • His wife Y • His son A Answer X grew R 1.6 million and Y grew R 400 000 during the marriage X grew R 1.2 million more than Y during the subsistence of the marriage Y is thus entitled to an accrual claim of R 600 000 After the marital claim there is R 1.2 million remaining in X estate (R 1.8 million – R 600 000 accrual claim) Y = R600 000.00 (Equal share is greater than R250 000) A = R600 000.00 (Laws of intestate succession) EXAMPLE 6: Lungile Dlamini died intestate and was survived by his wife Betty to whom he was married in community of property and who is five months pregnant with their child. He is also survived by the following people: • His son Kanye, who murdered him • Kanye’s son Lawrence • Jane and Sky, the daughters of his late brother, Steven • His son, Sipho, from a previous marriage • His major daughter Hope, who has renounced her inheritance from the estate • Hope’s son John • His major adopted son, Devin The joint estate amounted to R 800 000.00 Advise the Dlamini family as to who are Lungile’s heirs and what amount each will inherit. Give reasons where applicable. Answer Betty will inherit half of the joint estate – R 400 000.00, due to their marriage in community of property. Assuming that the unborn child is born, the remainder of the estate will devolve as follows: Betty will inherit R 250 000.00 as it is greater than an equal share. The unborn child will receive R 30 000.00 (should the child be born alive) Devin will receive R 30 000.00. Sipho will receive R 30 000.00. Kanye killed his father and is thus disqualified from inheriting (“die bloedige hand"). Therefore, Kanye’s son Lawrence, will inherit his share of R 30 000.00. Hope renounced her inheritance; thus, Betty will be entitled to her share of R 30 000.00. Therefore, Betty receives R 280 000.00 inheritance in total in addition to the R 400 000.00 marital claim. ANNEXURE D REDISTRIBUTION AGREEMENT Made and entered into by and between Nomsa Khumalo, ID 961203 5177 085 (major heir of the deceased) AND Lerato Khumalo, ID 940716 5274 087 (major heir of the deceased) 1. The late Peter Khumalo (hereinafter referred to as “the Deceased”) died testate on 23 June 2023, and his estate is being administered under Estate Number 01599/24 in the office of the Master of the High Court at Johannesburg. 2. Letters of Executorship have been duly granted to Nigel Daniels with identity number: 890421 5161 002 a male practicing Attorney employed as such at Daniels & Smith Attorneys Inc. AND WHEREAS the heirs have mutually agreed, with the consent and approval of the Executor, to redistribute the assets of the estate in a manner different from their respective testate inheritances, so as to affect an equitable and satisfactory division of the estate. AND WHEREAS each of the heirs have consented freely and voluntarily to such redistribution and acknowledge that the benefits and assets allocated to them in terms of this agreement shall be in full and final settlement of their respective inheritance rights in the estate. AND WHEREAS this Redistribution Agreement is entered into in accordance with the provisions of section 14(1)(b)(iii) of the Deeds Registries Act 47 of 1937, for the purpose of giving effect to the redistribution of the estate assets and to enable transfer of the immovable property described herein to the respective heirs as agreed upon. WHEREAS in terms of clause 8 and 9 of the last Will dated 12 September 2021, of the late Peter Khumalo, he bequeathed; 1. His house, described as Erf 937, Registration Division Gauteng, Measuring 180 square metres in size, Held by Deed of Transfer 37892/20 and valued at R1 200 000.00 to his daughter, Nomsa Khumalo 2. Shares in his private company namely PPP Investments (PTY) LTD to the amount of R1 600 000.00 to his daughter, Lerato Khumalo AND WHEREAS, the heirs have agreed to redistribute their inheritances as set out below. NOW THEREFORE the parties agree as follows; 1. In place of the immovable property, Nomsa Khumalo shall receive the equivalent value thereof in cash to the amount of R1 200 000.00. 2. In place of the shares, the shares in PPP Investments (PTY) LTD are to be sold and Lerato Khumalo shall receive the immovable property as well as R400 000.00 in cash. 3. The parties acknowledge that this agreement is subject to confirmation by the Master of the High Court. Thus, done and signed in Johannesburg on 04 February 2024 by the heirs and the undersigned witnesses, all being present at the same time. N Khumalo Witness One __________ ______________ L Khumalo Witness Two ANNEXURE E Kagiso Mokoena and Nelly Mokoena are married in community of property. Kagiso died intestate on 13 August 2025 and is survived by the following people: - His wife, Nelly - His two sons from his marriage to Nelly – James Mokoena and Vincent Mokoena - His daughter from his former marriage, Jessica Mdlandla Kagiso’s estate consists of the following: - A holiday house in George, Western Cape sold by the Executor for R1 300 000.00. - A bond in favour of First National Bank, an amount still due and owing for R1 200 000.00 over the holiday house. - Furniture to the value of R35 000.00 - A Renault Sandero Stepway valued at R170 000.00 but sold by the Executor for R165 000.00 - A life policy on Kagiso’s life with Liberty Life for R800 000.00, payable to James. - A Sanlam life policy on Nelly’s life for the amount of R700 000.00 whereby Kagiso was the appointed beneficiary. The premiums were paid by Kagiso. Nelly elects to surrender the policy upon Kagiso’s death, the surrender value is R180 000.00. - A Momentum life policy on Kagiso’s life for the amount of R1 200 000.00. No beneficiaries were appointed. Momentum only paid out R1 180 000.00 as there was a loan against the policy for R20 000.00. - 1 000 shares in Nature Save (Pty) Ltd, valued at R180 000.00 but sold by the Executor for R192 000.00. - Funeral expenses that amount to R46 000.00. - Outstanding rates and taxes owed to Ekurhuleni Municipality in the amount of R116 000.00. - Savings account with Capitec in the amount of R270 000.00, which includes R6 500.00 interest accrued up to 13 August 2025. An amount of R275 000.00 was paid into the estate banking account. - Bond cancellation and transfer costs for the property in George amount to R105 000.00. - Other administration expenses excluding Master’s fees and Executor’s fees amount to R13 000.00. Draft the Liquidation and Distribution account. The Executor is not VAT registered. First and Final Liquidation and Distribution Account in the estate of the late Kagiso Mokoena who died on 13 August 2025 with identity number 630421 0321 042 and who was married in community of property to Nelly Mokoena (born Mphuti) with identity number 680810 0347 048. Masters reference number: 034387/2025 (Johannesburg) LIQUIDATION ACCOUNT: Description Item Number Calculation (-) (+) Assets Immovable Property ERF 321 Province of (1) R 1 300 000.00 Western Cape, Title Deed No: T59199/14, Measuring 190 hectares in size Realized Movable Property Vehicle Renault (2) R 165 000.00 Sandero Stepway with Registration number: CD459GP Realized Household furniture & (3) R 35 000.00 effects Per informal valuation Awarded to: Half to Nelly Mokoena due to marriage in community of property Remaining half to intestate heirs in terms of the Intestate Succession Act 81 of 1987: Nelly Mokoena James Mokoena Vincent Mokoena Jessica Mdlandla Nature Save (PTY) Ltd (4) R 192 000.00 1000 shares with registration number: 5611/07 Per auditors’ valuation approved by Chief Revenue Inspector Realized Claims in Favour Capitec Bank (5) R 270 000.00 Savings Account Account number: 1014947288 R 263 500.00 Capital R 6 500.00 Interest Collected Sanlam Life Policy (6) R 180 000.00 Policy number: 155712 Surrender value Collected Momentum Life Policy (7) R 1 200 000.00 Policy Number: 784592 No beneficiary Collected Total Assets R 3 342 000.00 Liabilities Administration Expenses (9) R 13 000.00 Bond cancellation and R 105 000.00 transfer costs Masters Fees R 6 400.00 (3.5% of Executors Fees R 3 342 000.00) R 116 970.00 Creditors FNB Bond (10) R 1 200 000.00 Momentum loan on policy (11) R 20 000.00 Funeral expenses (12) R 46 000.00 Ekurhuleni Municipality (13) R 116 000.00 Total Liabilities R 1 623 370.00 Estate duty Nil Balance Available for R 1 718 630.00 Distribution ESTATE DUTY ACCOUNT: Property Total Assets R 3 342 000.00 Less difference in sale of R 12 000.00 shares in Nature Save (PTY) Ltd Less Momentum Life policy R 1 200 000.00 R 2 130 000.00 Less Nelly half share R 276 315.00 (R 2 130 000.00 (property) – (R 1 623 370.00 (liabilities) – R 46 000.00 (funeral expenses)) = R 552 630.00 / 2 Plus deemed property Momentum Life policy R 1 200 000.00 Liberty Life policy R 800 000.00 R 2 000 000.00 Less Allowable Deductions Total Liabilities R 1 623 370.00 Nelly Mokoena inheritance R 250 000.00 R 1 873 370.00 Less s 4 Primary Rebate R 3 500 000.00 = Dutiable Amount NIL X 20% = Estate Duty NIL Kindly note the following for illustrative purposes: - Should the deceased have owned a bona fide farming undertaking, then 30% of the value of the farm would have been deducted from the Total Assets under the heading of ‘Property’. - Should any donations have been made into the deceased estate, then such donations would have been added under the heading of ‘Deemed Property’. - Should the deceased have had a valid Will whereby any charitable bequests were made in such Will, then such charitable bequest would have been deducted under the heading of ‘Allowable Deductions’. - Should the deceased have nominated his wife Nelly as the beneficiary to the Liberty Life Policy instead of James, then the policy would also have been deducted under the heading of ‘Allowable Deductions.’ RECAPITULATION ACCOUNT: Cash assets and assets R 3 307 000.00 reduced to cash: Item 1 R 1 300 000.00 Item 2 R 165 000.00 Item 4 R 192 000.00 Item 5 R 270 000.00 Item 6 R 180 000.00 Item 7 R 1 200 000.00 To: Liabilities R 1 623 370.00 To: Estate Duty R Nil To: Cash Legatees R Nil Cash surplus R 1 683 630.00 DISTRIBUTION ACCOUNT: Balance available for R 1 718 630.00 distribution brought forward Add Funeral expenses R 46 000.00 To: Nelly Mokoena R 882 315.00 Surviving spouse of the deceased Half by virtue of marriage in community of property Consists of: Furniture Cash Less Funeral expenses R 46 000.00 Balance available for R 836 315.00 distribution To: Heirs Nelly Mokoena, surviving R 250 000.00 spouse of the deceased by virtue of the Intestate Succession Act 81 of 1987 Consists of: Furniture Cash James Mokoena, surviving R 195 438.33 child of the deceased by virtue of the Intestate Succession Act 81 of 1987 Consists of: Furniture Cash Vincent Mokoena, surviving R 195 438.33 child of the deceased by virtue of the Intestate Succession Act 81 of 1987 Consists of: Furniture Cash Jessica Mdlandla, surviving R 195 438.33 child of the deceased by virtue of the Intestate Succession Act 81 of 1987 Consists of: Furniture Cash Balance available for NIL distribution INCOME & EXPENDITURE ACCOUNT: Income Capitec R 5 000.00 Savings Account Account number: 1014947288 Interest R 5 000.00 Expenditure Executors’ remuneration R 300.00 (6% of total income) R 300.00 Balance available for distribution 4 700.00 To: Nelly Mokoena R 2 350.00 Surviving spouse of the deceased Half by virtue of marriage in community of property To: Heirs Nelly Mokoena, surviving R 587.50 spouse of the deceased by virtue of the Intestate Succession Act 81 of 1987 James Mokoena, surviving R 587.50 child of the deceased by virtue of the Intestate Succession Act 81 of 1987 Vincent Mokoena, surviving R 587.50 child of the deceased by virtue of the Intestate Succession Act 81 of 1987 Jessica Mdlandla, surviving R 587.50 child of the deceased by virtue of the Intestate Succession Act 81 of 1987 Balance available for distribution NIL FIDUCIARY ASSET ACCOUNT: (for illustrative purposes) Assets Erf xxx Rx Province of xxx Measuring: xxx square metres Held by Deed and Transfer xxx As per appraised value Awarded to fiduciary heir in terms of the Will: xxx (Name / Surname / ID ) Liabilities Executors’ renumeration (3,5% Ry of value of Asset) Transfer cost Ry Balance available for Rx distribution Distribution account Balance brought forward (from Rx balance available for distribution) To: xxx Ry Major xxx of deceased, fideicommissary heir in terms of the fideicommissum created by the Will of xxx Balance available for distribution NIL EXECUTORS’ CERTIFICATE: I, the undersigned, Brian Majola, the appointed executor in the estate of the late Kagiso Mokoena, estate number 034387/2025 (Johannesburg), hereby certify: 1. That the First and Final Liquidation and Distribution Account has been prepared correctly and fairly represents all assets, liabilities, income, and expenses of the estate. 2. To the best of my knowledge and belief, all assets have been collected, all liabilities paid, and the distribution to the heirs and spouse has been carried out in accordance with the law. Signed at Johannesburg on this ___ day of ______ 2026. _________________________ Brian Majola – Executor BY KYLE KIETZMANN ADMITTED ATTORNEY IN SOUTH AFRICA

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