|

Articles

Cornell Horn Attorneys Legal Articles

Executor of an Estate - Duties, Risks, and Common Mistakes

An executor of an estate is the person or entity legally appointed to administer a deceased person’s estate after death. In South Africa, the executor’s authority does not come from the will alone. It arises only once the appointment is formally confirmed by the Master of the High Court through the issuing of Letters of Executorship.

Until those letters are issued, no individual regardless of what the will states has legal power to deal with estate assets, settle debts, or distribute inheritances.

At a foundational level, executorship of an estate involves:

  • Taking control of all assets and liabilities of the deceased
  • Ensuring debts, taxes, and administration costs are settled
  • Distributing the remaining estate strictly in accordance with the will or, where no will exists, the Intestate Succession Act

The executor acts in a fiduciary capacity. This means the executor must always place the interests of the estate and its beneficiaries above personal interests. Decisions must be lawful and properly documented. Executors do not have discretion to “adjust” outcomes for convenience, fairness, or family pressure.

An executor may be:

  • An individual named in the will like a friend or family member
  • A beneficiary of the estate like a child or the surviving spouse
  • A professional such as an attorney, accountant, or trust company

The role is administrative, legal, and financial. It carries personal responsibility and potential liability if handled incorrectly. Being named as executor is not an honorary position; it is a regulated legal function with enforceable duties.

Because of these complexities it’s a legal requirement in South Africa that a non-professional person that is appointed as executor must appoint a professional like an attorney to attend to the administration.

Beneficiaries do not control the estate, but they are entitled to lawful administration and a proper accounting of the executor’s actions.

Duties of an executor - estate administration attorneys

How an Executor Is Appointed and Authorised

An executor is generally appointed in one of two ways: by nomination in a valid will, or if no valid will exists by means of nomination by the heirs in terms of the Intestate Succession Act.

Appointment through a will

When a person dies leaving a valid will, the individual or institution named as executor must apply for formal appointment. Nomination alone carries no authority. The executor must submit various prescribed documents, including the original will, death notice, inventory, acceptance of trust as executor, before the Master of the High Court will issue the Letters of Executorship.

Appointment where there is no will

If the deceased died intestate, or if the nominated executor has died, declined the role, or is legally disqualified, an executor is appointed according to statutory rules. In these cases, heirs may nominate a close family member to act as executor. Where disputes arise, a neutral or professional executor is often appointed.

Letters of Executorship

Legal authority begins only once Letters of Executorship are issued. These letters:

  • Confirm the executor’s legal standing
  • Enable access to bank accounts, investments, and property
  • Authorise engagement with creditors, SARS, and third parties

Any action taken before letters are issued is unlawful and can expose the individual to personal liability.

Security requirements

If the executor was not nominated in a valid will and is not one of the persons exempt from furnishing security (spouse, child or parent of deceased) the executor must lodge security to protect the estate against mismanagement. A will may exempt an executor from providing security, but this exemption is not automatic and must be clearly indicated in the will.

Acceptance of office

Executorship is voluntary and therefore a nominated executor may decline the appointment by renouncing the nomination in writing. Whereas once appointed the executor must formally resign in writing.

Appointment marks the start of a regulated process. From this point forward, every step taken by the executor is subject to statutory rules and scrutiny.

Duties and Responsibilities of an Executor of an Estate

The duties of an executor of an estate is determined by law and enforced through oversight. Executors are not free to choose which tasks to prioritise or ignore. Each obligation must be carried out in the prescribed sequence and within reasonable timeframes.

Securing and identifying estate assets

The executor must locate, secure, and take control of all assets belonging to the deceased. This includes immovable property, bank accounts, investments, vehicles, business interests, and personal belongings. Assets must be protected from loss, misuse, or unauthorised access from the date of death.

Opening an estate bank account

All estate income and payments must flow through a dedicated estate late bank account. Mixing estate funds with personal or business accounts is prohibited and treated as a serious breach of duty.

Notifying creditors and settling debts

Creditors must be formally notified, and claims must be assessed and settled. The executor is responsible for rejecting invalid claims and ensuring lawful payment of valid ones.

Tax compliance

The executor must ensure that all outstanding tax returns are submitted and that estate-related taxes are paid. This includes income tax up to date of death, after death and estate duty where applicable.

Preparation of the liquidation and distribution account

The liquidation and distribution account is the central reporting document of the estate. It reflects assets, liabilities, expenses, and proposed distributions.

Distribution to beneficiaries

Once the account has been approved and the inspection period has passed, the executor must distribute the estate strictly according to the will or intestate succession rules. No deviation is permitted, even with beneficiary consent.

Can an Executor Be a Beneficiary?

Yes. An executor can also be a beneficiary of the estate. South African law permits this dual role, and it is common that a spouse, child, or close relative is appointed as executor.

Fiduciary duty overrides personal interest

When an executor is also a beneficiary, the executor’s fiduciary duty remains unchanged. The executor must administer the estate impartially and in strict accordance with the will or intestate succession rules. Personal entitlement does not allow preferential treatment, early distributions, or selective decision-making.

No automatic conflict, but increased scrutiny

Being both executor and beneficiary is not considered a conflict by default. However, decisions taken by such an executor are more closely examined, particularly where:

  • Asset valuations affect distribution outcomes
  • Distributions are delayed without explanation
  • One beneficiary appears favoured over others

Any action that benefits the executor in their personal capacity at the expense of the estate or other beneficiaries exposes the executor to challenge.

Prohibited conduct

An executor who is also a beneficiary may not:

  • Advance or pay their own inheritance before approval of the liquidation and distribution account
  • Use estate assets for personal purposes
  • Alter asset values to improve their share
  • Ignore or downplay objections raised by other beneficiaries

Risks and Personal Liability for Executors

Executorship carries personal legal and financial exposure. An executor who misunderstands the role, acts informally, or relies on assumptions can become personally liable for losses, penalties, or unpaid obligations.

Personal liability for maladministration

Executors are personally responsible for ensuring that the estate is administered lawfully. Where assets are lost, misapplied, or distributed incorrectly, the executor can be held liable to compensate the estate or affected beneficiaries from personal funds.

Unauthorised early distributions

Paying beneficiaries before approval of the liquidation and distribution account is a frequent error. If a creditor later emerges or an objection is upheld, the executor remains responsible for recovering the funds. Failure to do so converts the shortfall into personal debt.

Tax exposure

Outstanding income tax, capital gains tax triggered by death, and estate duty fall within the executor’s responsibility. Late filings, understatements, or incorrect submissions can result in penalties and interest for which the executor may be held accountable.

Improper handling of estate funds

Using estate money for personal expenses, even temporarily, is treated as a serious breach. Lack of segregation between estate and personal finances is often cited in removal applications.

Failure to follow statutory timeframes

Unreasonable delays, missed lodgement deadlines, or failure to respond to directives can trigger formal complaints. Prolonged inactivity is a recognised ground for intervention.

Exposure to removal and cost orders

Where an executor’s conduct causes unnecessary delay or expense, removal from office may be ordered. Courts may also award costs against the executor in a personal capacity.

Common Mistakes That Delay or Derail Estate Administration

Most estate delays are not caused by complexity or disputes. They arise from avoidable errors made early in the administration process. These mistakes often compound over time and are difficult to reverse once beneficiaries or authorities become involved.

Acting before formal authority

Taking control of assets, closing accounts, or making payments before Letters of Executorship are issued is unlawful. Banks, insurers, and transfer offices may later refuse to recognise actions taken without authority, forcing the process to restart.

Incomplete asset disclosure

Failing to identify all assets—particularly policies, offshore holdings, business interests, or informal loans—leads to amended accounts, objections, and renewed inspection periods. Each omission adds months to administration.

Poor record-keeping

Missing invoices, undocumented payments, and informal notes undermine the liquidation and distribution account. Executors are required to account for every transaction. Reconstruction after the fact is rarely accepted without scrutiny.

Delays in tax compliance

Tax clearance is a bottleneck in estate administration. Late engagement with the South African Revenue Service commonly stalls estates, even where funds are available.

Informal arrangements with beneficiaries

Side agreements, verbal assurances, or “temporary” advances to beneficiaries frequently result in disputes. Executors are bound by formal approvals, not family consensus.

Misunderstanding the role

Private individuals often accept executorship assuming it is administrative and brief and that they can attend to the work themselves. If the value of the estate is over R250 000 the executor must appoint a professional like an attorney to do the administration. As executors are often not aware of this it causes delays in the process.

Ignoring objections or correspondence

Failure to respond to beneficiary queries or formal objections escalates matters. Silence is often interpreted as mismanagement and triggers intervention.

These errors are procedural, not technical. Each is preventable through disciplined compliance and early professional input where required.

When an Executor Can Be Removed or Replaced

An executor does not hold office unconditionally. Appointment in a will does not guarantee permanence, and executors can be removed or replaced where their conduct, capacity, or circumstances justify intervention.

Grounds for removal

Removal may occur where an executor:

  • Fails to perform duties within reasonable timeframes
  • Mismanages or misappropriates estate assets
  • Acts with bias or in personal self-interest
  • Ignores lawful directives or correspondence
  • Lacks capacity due to illness, absence, or incompetence

The test is not intent. Even well-meaning executors can be removed if their actions compromise proper administration.

Who can seek removal

Beneficiaries, creditors, co-executors, or interested parties may apply for removal where sufficient grounds exist. Complaints are assessed on evidence, not dissatisfaction alone.

Replacement of an executor

Where an executor is removed or resigns, a substitute must be appointed. This may be:

  • A person nominated in the will as an alternative executor
  • A nominee agreed upon by heirs
  • An independent professional appointed to stabilise administration

Until replacement is confirmed, estate administration may be suspended.

Consequences of removal

Removed executors may be:

  • Ordered to hand over all records and assets
  • Required to account for losses or irregularities
  • Held personally liable for costs arising from misconduct

Removal is not routine, but it is a real risk where executors fail to understand the seriousness of the role.

Cornell Horn Attorneys – Deceased Estate Administration

Cornell Horn Attorneys provides structured, legally compliant deceased estate administration across South Africa. Our work focuses on the correct execution of executor duties, accurate reporting, and timely finalisation of estates in accordance with statutory requirements.

We assist with:

  • Formal appointment and acceptance of executorship
  • Administration of deceased estates from reporting to distribution
  • Settlement of estate debts and liabilities
  • Estate duty and tax compliance
  • Preparation and approval of liquidation and distribution accounts

Our role is to ensure estates are administered correctly, transparently, and without unnecessary delay, while protecting executors and beneficiaries from avoidable risk.

Schedule an appointment with our team.

Comments are closed for this post, but if you have spotted an error or have additional info that you think should be in this post, feel free to contact us.

Subscription

Get the latest updates in your email box automatically.

Search

Archive