Duties of executors in deceased estates
In the past, I have written several articles on the administration of deceased estates. One of the key requirements in estate administration is the appointment of an executor.
In this article I look at the duties of executors in terms of the law.
Executors’ duties when administering deceased estates
Some of the key duties of an executor include the following:
Preparing an inventory of the estate assets.
Public notice to creditors and others to lodge claims.
Dealing with creditors after the notice period.
Payment to the Master of the High Court of money devolving upon vulnerable beneficiaries such as minors, mentally disordered or defective persons or absent persons.
Administration and distribution accounts.
Preparation of inventory of estate assets
This is a requirement in terms of section 38 of the Administration of Estates Act (Chapter 6:01) or “the Act”. In terms of the Act the executor shall, as soon as he or she is granted the letters of administration, immediately make an inventory showing the value of all property, goods and effects, movable and immovable, of whatever kind belonging to the estate.
If the executor later finds more property, goods or effects belonging to the estate he or she shall make additional inventories. The executor shall forthwith cause the inventory or additional inventory to be transmitted to the Master of the High Court.
Public notice to creditors and others to lodge claims
This is a requirement in terms of section 43 of the Act. The executor is required to immediately cause a notice to be published in the (Government) Gazette and in a local newspaper circulating in the district the deceased ordinarily resided, calling upon all persons having claims due, or not yet due, to lodge the claims within a specified period. The period is usually a minimum of 30 days but a maximum of three months.
Duties of the executor after expiry period for lodging claims
This is a requirement in terms of section 45 of the Act. After the expiry of the notice period the executor is required to do the following:
Rank all claims of creditors according to the legal order of preference.
Pay off and discharge the claims as soon as the funds necessary for that purpose have been realised out of the estate.
Payments to the Master of money due to vulnerable beneficiaries
According to section 51(1) of the Act, if an executor who is administering and distributing any estate finds that any sum of money has devolved upon or become due from the estate to any minor, mentally disordered or defective person or person absent from Zimbabwe, not having a guardian, tutor, curator or lawful representative, the executor shall forthwith pay such money into the hands of the Master.
In other words such funds shall be kept by the Master. However, if there is a valid will which directs otherwise, then such funds shall be dealt with in terms of the will.
Administration and distribution accounts
Section 52 of the Act applies. Every executor shall administer and distribute the estate according to the law and the provisions of any valid will relating to that estate. The ex ecutor is required to frame and lodge with the Master of the High Court an account showing the estate up to the date when the account was lodged, together with a true copy of that account.
If the administration and distribution account is not the final account it shall set forth all debts due to the estate and still outstanding and all the still unrealised, and the reasons why the same have not been collected or realised.
The executor shall regularly as the Master may direct, render periodic accounts of his administration and distribution until the estate is finally liquidated. The estate administration and distribution account shall lie open for inspection.
The executor shall give due notice that the account is open to inspection by advertisement in the (Government) Gazette and a local newspapers.
Conclusion
The executor has many responsibilities in terms of the Estate Administration Act, some which have been explained in this article.
Space permitting, I promise to write more articles on estate administration for the benefit of readers.
Disclaimer
This simplified article is for general information purposes only and does not constitute the writer’s professional advice.
Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z), ACCA (Business Valuations) MBA(EBS, Heriot- Watt, UK) is the Managing Partner of Hofisi & Partners Commercial Attorneys, chartered accountant, insolvency practitioner, commercial arbitrator, registered tax accountant and advises on deals and transactions. He has extensive experience from industry and commerce and is a former World Bank staffer in the Resource Management Unit. He was recently appointed to sit on the Council of Estate Administrators in Zimbabwe. He writes in his personal capacity. He can be contacted on +263 772 246 900 or ghofisi@hofisilaw.com or gohofisi@gmail.com. Visit www//:hofisilaw.com for more articles.
