A deceased estate comprises the assets, liabilities, rights and obligations that must be administered after a person dies. It can include immovable property, bank accounts, investments, vehicles, personal effects, business interests, loan claims, debts, taxes and other obligations.

A deceased estate is not a separate juristic person in the same way as a company. It is, however, administered as a distinct estate under the Administration of Estates Act 66 of 1965. Once appointed, the executor acts as the estate’s legally authorised representative and takes custody or control of the estate property for purposes of administration. The estate may have its own Master’s reference, estate bank account and post-death tax affairs. For income tax purposes, the Income Tax Act specifically treats the deceased estate as a separate taxpayer and, subject to specified exceptions, as if it were a natural person.

Not every amount connected with a death is necessarily administered by the executor. Certain benefits can be paid outside the deceased estate, including some life policy proceeds paid directly to nominated beneficiaries and many retirement fund death benefits. Trust property that genuinely belongs to an inter vivos trust is also not an asset of the founder’s deceased estate, although a loan account or other right held by the deceased against the trust can be an estate asset. An amount that falls outside the executor’s administration can still be relevant for estate duty purposes. Domestic life policy proceeds are a common example of deemed property under the Estate Duty Act.

See also: How does a deceased estate work? | How is a deceased estate distributed?

Disclaimer: The information provided here is intended as general guidance only and does not constitute legal, tax, or financial advice. Every situation is unique, and legislation is subject to change. We invite you to reach out to our team at Wealth and Legacy Group for guidance tailored to your specific circumstances.