The winding up of deceased estates in South Africa is often delayed, placing financial strain on surviving families. Jan du Plessis, FISA CEO, says the general rule is not to distribute funds until the liquidation and distribution account is finalised, warning that early use of funds “should only be done in exceptional circumstances.” However, where families face hardship, section 26 of the Administration of Estates Act allows executors to approach the Master to release funds for a surviving spouse or dependent child’s basic necessities.
Jan emphasises caution, noting executors risk liability if unknown claims emerge and that tax affairs must be in order, as this is a “major red flag.” He adds proper estate planning is critical, highlighting life policies as an efficient solution because they pay beneficiaries directly without executor involvement, ensuring quicker financial support.
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