During National Wills Week, it is essential for individuals to carefully consider their choice of executor, as this decision can significantly affect the management of their estate. Picture: File
Choosing an executor is a crucial part of creating a will, but it’s not as straightforward as it may seem.
National Wills Week, running from September 16 to 20, presents the perfect opportunity for people to understand that his decision carries significant responsibilities and the slightest mistake can have serious consequences.
Jocelyn Manda, Fiduciary Specialist at Professional Provident Society (PPS), explains the potential pitfalls of selecting an executor and, more importantly, how to avoid them.
Pitfall: Misplacing the original will before it is lodged with the Master of the High Court can lead to delays, extra costs or even legal disputes among heirs.
Solution: Ensure that your will is store in a secure location like a bank safe deposit box or a fiduciary service provider. This will minimise the risk of loss or damage and ensures that they will is easily accessible when needed.
Pitfall: Failing to properly publish an estate notice in the Government Gazette or the correct local newspaper—or publishing it in the wrong newspaper—can slow down the process of settling an estate and incur unnecessary costs.
Solution: It is crucial that you choose an executor that that has knowledge of the correct legal procedures and is experienced in handling estate notices accurately and promptly.
Pitfall: Beneficiaries can hold an executor liable for potential lost income if estate funds do not generate income over a reasonable period.
Solution: Appoint an executor that has an understanding asset management and can make sound financial decisions. A fiduciary specialist can ensure estate funds are managed efficiently to maximise returns for beneficiaries.
Pitfall: Failure to obtain a tax clearance certificate when finalising an estate can lead to delays and potential legal complications. This includes tax clearance certificates for capital gains and VAT.
Solution: Make sure your executor is familiar with tax regulations or consider appointing a professional executor who is well-versed in getting the necessary tax clearances.
Pitfall: Misunderstandings or mishandling problems that relate to marriage such as ante-nuptial contracts, divorce claims or accrual calculations, can lead to disputes and financial loss.
Solution: Choose an executor who has a clear understanding of matrimonial property law or seek help from a fiduciary service provider that specialises in handling complex estate issues.
Pitfall: If someone gains access to the property of the deceased and removes valuable items before the estate is settled, then the executor could be held responsible for the loss.
Solution: Ensure that your executor takes steps to secure the assets of the estate like changing locks or inventorying valuables. A professional executor will have protocols in place to protect the assets from unauthorised access.
IOL Business
Related Topics: