A deceased estate does not pass immediately to the beneficiaries on death. The executor first administers the estate, pays or provides for valid debts, taxes and administration expenses, and then distributes the net estate once the statutory process allows.

If there is a valid will, the estate is distributed according to the will, subject to applicable law. If there is no valid will for all or part of the estate, the Intestate Succession Act determines the heirs. The intestate rules provide for spouses and descendants first, with per stirpes division and representation where applicable, followed by the further statutory order of succession.

The current intestate amount used where a deceased is survived by both a spouse and descendants is R250,000 or a child’s share, whichever is greater, subject to the Act. Since 3 April 2024, a qualifying partner in a permanent life partnership involving reciprocal duties of support is included within the statutory meaning of “spouse”.

Some benefits are dealt with outside ordinary estate distribution. Many retirement fund death benefits are allocated under section 37C of the Pension Funds Act, while a life policy may pay directly to a nominated beneficiary depending on the policy. Trust property belonging to an inter vivos trust is not distributed by the deceased’s executor merely because the founder or a beneficiary has died.

See also: Who is the rightful heir to the estate? | 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.