What if the estate is less than R250 000?
If an estate is valued at less than R250,000, it can be administered through a simplified process under Section 18(3) of the Administration of Estates Act. Instead of obtaining full letters of executorship, the Master of the High Court will issue letters of authority to a Master's Representative, who is typically the executor named in the will or a nominated heir. This process is generally faster and less formal than the full administration process for larger estates.
What Is a Section 18(3) Estate in South Africa?
Answer: A Section 18(3) estate is a deceased estate valued at R250,000 or less, administered under Section 18(3) of the Administration of Estates Act. It requires a Master’s Representative instead of an Executor, with simplified procedures. Need help with a small estate? Contact Louwrens Koen Attorneys for expert guidance.
Who Can Be Appointed as a Master’s Representative for a Section 18(3) Estate?
The Master’s Representative is typically the person named in the will or nominated by heirs if there’s no will. They must be over 18, mentally capable, and not insolvent, and are appointed by the Master or Magistrate’s Court.
How Does a Section 18(3) Estate Differ from Other Estates?
Unlike estates over R250,000, Section 18(3) estates don’t require a Liquidation and Distribution Account unless requested by the Master. A Master’s Representative handles administration, making the process faster and less complex.
What Are the Duties of a Master’s Representative?
A Master’s Representative reports the estate, compiles an asset inventory, pays debts, and distributes assets per the will or Intestate Succession Act. They don’t need to submit a formal account unless the Master requests one.
Overwhelmed by duties? Louwrens Koen Attorneys offers professional support.
Where Should I Report a Section 18(3) Estate?
Report the estate to the Master’s Office in the deceased’s jurisdiction or the nearest Magistrate’s Court if the estate is R125,000 or less. Reporting must occur within 14 days of death.
Unsure where to start? Contact Louwrens Koen Attorneys for assistance.
What Documents Are Needed for a Section 18(3) Estate?
Submit a death certificate, will (if any), Death Notice, Next-of-Kin Affidavit, asset inventory, nomination of a Master’s Representative, and an affidavit (for estates R125,000 or less) confirming no prior reporting.
See our Forms section.
Need document help? Louwrens Koen Attorneys can guide you.
Do Creditors Need to Be Notified for a Section 18(3) Estate?
Yes, the Master’s Representative may need to notify creditors informally, but formal advertising in the Government Gazette isn’t always required unless directed by the Master. Valid debts are paid from the estate’s assets.
Facing creditor issues? Contact Louwrens Koen Attorneys for expert handling.
How Long Does It Take to Administer a Section 18(3) Estate?
Administering a Section 18(3) estate typically takes 3–6 months, faster than larger estates due to simplified requirements. Delays may occur if disputes or complex debts arise.
Want a quick process? Louwrens Koen Attorneys ensures efficient administration.
Are Fees Different for a Section 18(3) Estate?
The Master’s Representative is entitled to 3.5% of the estate’s gross assets, 6% of income collected post-death, and a minimum fee of R350. VAT may apply if registered. Fees are regulated but often lower due to the estate’s size.
Need fee clarity? Louwrens Koen Attorneys offers transparent guidance.
Can a Section 18(3) Estate Be Transferred to the Master’s Office?
If reported at a Magistrate’s Court, the file is held for three months, then transferred to the Master’s Office for finalization. The Master may request an account if minors or disputes are involved.