RGDs Role in Estate Settlement at the Administrator General’s Department
Documents needed for processing estates
Funeral Expense Advance
Where a deceased person dies intestate leaving cash assets held with an institution and these funds are needed for his burial, the Administrator-General upon request, may authorise the release of the funds. An advance will only be authorised upon the presentation of the requisite proof of death and an invoice from the funeral home.
Documents required for Processing of matter:
Administration Of Estates
Once there are minor beneficiaries on intestacy, the Administrator-General is mandated by the Administrator-General’s Act to administer that estate. The administration of an estate by the Administrator-General will only cease after the last minor attains the age of eighteen years. Any person, other than the Administrator-General, who wishes to administer an intestate estate with minor beneficiaries, can only do so with an Order of the Court.
The Administrator-General relies on the relatives to report the death of persons who have died intestate leaving minor children.
The normal Course of Administration
Once a grant of Administration is issued by the relevant Court, the Administrator-General (like other administrators) has the following duties:
To collect assets and pay debts.
The Personal Representative forwards the original or certified copy of the grant of Letters of Administration issued by the Court to every institution or person holding assets or titles to assets for the deceased and request the release thereof to him/her.
It is mandatory that an advertisement be placed in the newspaper inviting creditors of the estate to come forward and substantiate their claim before the expiration of six (6) weeks. Once these claims are properly substantiated and accepted by the Personal Representative, the debts have to be settled before any distribution of assets to beneficiaries can take place. If sufficient cash assets are not available to settle legitimate claims, then the Personal Representative may have to invoke her power of sale and sell real properties to meet these debts.
Of crucial importance are statutory debts. Once the assets of the deceased include real property, shares and stocks, these are subject to the payment of transfer tax on death. Transfer tax on death is approximately 15% of the value of these assets (with allowance being made to offset funeral expenses and mortgage debts). If not paid within a year of the death of the deceased, the outstanding transfer tax attracts interest at the rate of 6% per annum until it is paid. Transfer tax has to be settled before the Personal Representative can seek to sell or transfer these assets. Provisions are made for certain eligible classes of relatives to seek an exemption from transfer tax on land, where the property was the principal place of residence of the deceased and the applicant at the time of death (or the matrimonial home, where the spouse is the applicant).
It should also be pointed out that all administrators and executors are entitled to a commission of 6% from the estate for their services, which is also paid before distribution of the assets to beneficiaries, as well as Attorney’s fees.
This duty is particularly applicable to the Administrator-General, but also relates to Executors who may have been appointed trustee under the will of the deceased of minor children.
After claims are settled, the Administrator-General has this function before distribution simply because the estates under her purview contain minor beneficiaries, which preclude final distribution until the last minor attains majority. As such the Administrator-General has the additional duty to maintain, insure and raise rental income from real property (link to property information here); to invest funds prudently (link to investment information here) and to assist with the educational, medical and other crucial expenses of the minor beneficiaries, from 50% of their capital entitlement during their minority. Where, for instance, the deceased was a majority shareholder in a company, it may involve the Administrator-General being registered as a shareholder in respect of the deceased’s share, attending general meetings of the company and playing such roles as are necessary in order to preserve the value of the shares for the beneficiaries.
For the Administrator-General, once the last minor attains the age of majority and all debts are settled, the estate is ready to be wound up. The Administrator-General will require proof of relationship for all beneficiaries before distribution. This proof can take the form of certified copy of Birth Certificates, Marriage Certificates, Paternity and Spouseship Orders or even Affiliation Orders.
At this stage of distribution, a final statement of account will be produced detailing all income and expenditure, arriving at the amount due to each beneficiary as per their entitlement under the Intestates’ Estates and Property Charges Act (Please see Table of Distribution below). The necessary documents to allow for a transfer of real property and shares are executed by the Personal Representative and the beneficiaries and title is passed to the beneficiaries. Once the beneficiary signs the statement of account signifying his approval of its contents, a cheque is prepared and tendered to the beneficiary in accordance with the manner indicated by him for disbursement, such as deposit in a bank account or by registered mail.
Table Of Distribution Where the deceased died leaving the following class of persons, the residuary estate is passed to the beneficiaries in the stated proportions:Spouse, children & parents - | Half to Spouse & half to children in equal shares If only 1 child, two thirds to the spouse & one third to the Child. (Parents do not share in the estate) |
| Children & parents only - | children take absolutely in equal shares (Parents do not share in the estate) |
| Spouse & parents only - | Two thirds to spouse & one third to parents (in equal share if both alive) |
| Parents survive, but no spouse - | Parents take absolutely in equal shares. or children Single surviving parent takes absolutely. |
| If no spouse, children or parent - | The class of persons next in line in the following table will take in equal share in the following order to the exclusion of those in the lower classes:
Brothers and sisters of the whole blood |