Page 15 - Bespoke EPG 2017 Digital

■■ Some duties of the executor:
◆◆ To report the deceased estate to the Master of the High Court
◆◆ To notify all creditors of the deceased’s passing
◆◆ To collect all monies owing to the estate
◆◆ To pay all creditors and legatees
◆◆ To account to the Master, all interested parties and to the heirs
◆◆ To pay all taxes and administrative charges
◆◆ To distribute the heirs’ inheritance(s).

Heirs and Legatees
■■ It is important to understand the legal difference between a legacy and an

inheritance.
■■ A legacy or special bequest is a specific item or amount of cash that is

bequeathed to a particular person (a legatee).
■■ The heir is the person who inherits the residue of the estate. This is what is

left after the debts have been paid and the legacy(s) distributed.

Bequests
■■ Where a testator bequeaths a cash legacy to a beneficiary, he needs to be

sure that his estate has sufficient liquidity to accommodate the bequest.
■■ The testator needs to give careful consideration to a specific bequest of an

asset which is subject to an encumbrance. For example, where no mention
is made of a bond on a fixed property, the executor is required to settle
the bond from the estate residue and only then is he able to transfer the
fixed property to the beneficiary (free of the bond). This could have serious
consequences for the heirs (who inherit the residue of the estate), as there
may be very little residue left, after the bond liability has been paid.
■■ All bequests to a surviving spouse and certain public benefit organisations
are exempt from estate duty. The value of these assets may thus be excluded
from the estate for estate duty purposes.
■■ Refer to the detail discussion of estate duty.

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