Estate headaches

It’s not always easy to wind up an estate. Sometimes problems and disputes arise, and according to experts, most of them can be prevented.

- Zerelda Esterhuizen

Estates and wills are not exactly the most exciting reading – no one wants to be reminded of their imminent death, but unfortunately, it’s necessary. And whether you want to know it or not, most of us require an expert to give us the right advice. Firstly, simply ask executors, who often wrestle with estates (and heirs), about how important it is to have a will, and secondly, know that wills should contain no obscurities.

There are many problems associated with the winding up of an estate, says Deenisha Nadesan, director of fiduciary services at Capital Legacy. “A major problem is of course when a person does not have a valid last will. It can result in delays in the reporting and administration of the estate and unintended consequences for those you leave behind. Family or heirs often do not understand the administration process, which can result in frustration and discontent.”

According to Nadesan, another headache is when there is limited information about the deceased’s assets and liabilities such as bank accounts, policies, fixed property, shares, business interests, and the like. “It could lead to delays in the gathering of information needed to report to the Master of the High Court, in which case it could take longer to finalise the estate.”

She adds that another problem is cash shortfalls in the estate in respect of both administration costs and creditors, with the result that the estate cannot be finalised.