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Insolvent Deceased Estates

Upon the death of an individual, their debts do not automatically disappear. Any debts that are solely in the name of the deceased must be paid from the estate's assets. 

However, if the estate's liabilities surpass its assets, the situation becomes more complex.

Insolvent Estate South Africa

The responsibility of the deceased's estate, including its assets, income, and debts, falls under the jurisdiction of the Master of the Court. An executor is appointed to oversee and manage the estate. 

If during this process, the executor discovers that the estate is unable to pay its debts, even after collecting any debts owed to the estate, it must be handled in accordance with Section 34 of the Administration of Estates Act. 

Additionally, the Insolvency Act 24 of 1936 may also be applied in the administration of the insolvent estate.

As specified by Section 34 of the Administration of Estates Act, it is the obligation of the executor to inform the creditors, the South African Revenue Service (SARS), and the Master of the High Court that the estate's liabilities surpass its assets. 

This notification will outline the status of the estate and notify creditors that unless a majority of them, in terms of number and value, instruct the executor in writing within a time frame specified in the notice (which must not be less than 14 days), to relinquish the estate under the Insolvency Act 1936 (Act 24 of 1936), the executor must move forward with liquidating all assets in the estate.

Van Deventer & Van Deventer Incorporated – Attorneys in Cape Town and Johannesburg 

The administration of an insolvent deceased estate in South Africa can be complex and requires a thorough understanding of the legal processes involved. Van Deventer & Van Deventer, with our extensive experience and expertise in this field, is the ideal choice for individuals seeking assistance in managing such an estate. 

Our commitment to providing comprehensive and effective solutions, combined with our deep knowledge of the relevant laws and regulations, makes us the preferred choice for anyone in need of assistance with the administration of an insolvent deceased estate.