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Here's a more detailed explanation of the process of lodging a claim against a deceased estate in South Africa:
1. Notice of Estate and Opportunity to Lodge a Claim
After a person dies:
- The Master of the High Court appoints an executor of the estate (often named in the will).
- The executor is legally required to publish a notice in a local newspaper and in the Government Gazette.
- This notice calls on all persons with claims against the estate to submit them in writing within a period of 30 days from the date of the notice.
This step is crucial because if you fail to lodge your claim within the prescribed period, your claim may be excluded from the estate distribution.
2. Drafting the Claim
Your claim must be clearly documented and contain the following:
- Your full name, contact details, and ID number
- Deceased's details (name, date of death, estate number)
- Detailed description of the debt or obligation, e.g.:
- A loan you gave to the deceased
- An unpaid invoice
- A lease agreement or damages
- Amount claimed, clearly stated in rands
- Supporting documentation, such as:
- Signed agreements
- Invoices or receipts
- Bank records
- Correspondence acknowledging the debt
- Your banking details for repayment
3. Submission of the Claim
You must submit your claim directly to the executor handling the estate. The estate notice will specify the name and contact details of the executor or their attorney. Submission methods may include:
- Hand delivery
- Email or post (only if allowed by the executor)
It's best to confirm receipt of your claim.
4. Evaluation by the Executor
The executor will:
- Review all submitted claims
- Determine the validity and priority of each claim
- Consider whether the estate is solvent (able to cover all debts)
- Prepare a Liquidation and Distribution Account (L&D Account) which includes accepted claims and how they will be paid
The L&D Account is submitted to the Master of the High Court and then advertised again for inspection and objection.
5. If the Claim is Disputed
If the executor rejects your claim:
- The executor must notify you of the rejection.
- You may attempt to resolve the matter informally.
- If not resolved, you can initiate legal proceedings in court to have your claim recognized and enforced.
This usually involves issuing a summons in the Magistrate’s Court or High Court, depending on the value and nature of the claim.
6. Payment
If your claim is accepted and the estate has sufficient funds:
- You will be paid in accordance with the ranking of creditors.
- Secured creditors (e.g., bond holders) are paid first.
- Then preferent creditors (e.g., SARS or unpaid wages).
- Unsecured creditors (like personal loans) come last.
Sample Ranking of Creditors:
- Executor's fees and administration costs
- Secured creditors (with a bond over property)
- Preferent creditors (e.g., taxes owed, employee wages)
- Unsecured creditors (like personal loans or service providers)
