THE area of Estate management for natural individuals has not been discussed in this column for a long time and this week, I found it worth the while to give a summarised exposé of the crucial area of law.
The Administration of Estates Act [Chapter 6:01] provides in detail, the procedures that one has to pursue when attempting to administer an estate.
It is important to mention at this stage that whereas natural individuals who die have their affairs administered by the above cited statute, corporates and other unnatural persons going into liquidation have their affairs administered by the Insolvency Act [Chapter 6:07]. Not every deceased person is expected to have his estate registered. Only persons dying leaving property, whether movable or immovable, must have their estates registered.
The purpose for registration is that the issue of the assets must be dealt with fairly for the benefit of creditors and beneficiaries to the estate. Such administration is supervised by the Master of the High Court but presided over by an Executor/Executrix who reports regularly to the Master. Had this situation not been provided for by law, beneficiaries of the Estate and creditors would tear each other apart and dissipate assets of the deceased without regard to the interests of others. The law exists therefore, to bring order and sanity to the issue of distribution of the deceased’s estate assets as well as settlement of debts, to creditors. The office of the Master of the High Court operates in every region of the country where our High Court sits.
Elsewhere, there are assistant Masters of the High Court who operate at designated Magistrates’ Courts of civil jurisdiction.
Upon death of an individual, the Master must be served with a death notice by the nearest relative or friend of the deceased and this notice must be given within 14 days of the demise of the deceased. This death notice is published by the Master in a newspaper circulating in the area as well as in the Government Gazette. The costs for publication of the notice are borne by the relative or friend seeking registration of the estate. If the deceased was married, the surviving spouse is expected by the Master to prepare an inventory of all property, goods and effects, movable and immovable of what kind so-ever which at the time of the death, formed part of or belonged to the estate.
Any attempt to conceal an asset from the inventory invites criminal sanctions. Pending the appointment of an executor of the deceased, all the property forming part of a joint estate between the deceased and the surviving spouse shall remain under the custody of the surviving spouse. Before the introduction of revolutionary legislation to protect gender discrimination, we used to experience sad scenarios where relatives of a deceased husband used to victimise the widow. Immediately upon the death of the husband, and seeking justification from dubious cultural norms, such relatives would invade and grab whatever assets they felt they could posses, leaving the widow and the deceased’s children in penury. After a death notice has been circulated, the Master invites relatives and/or creditors of the deceased for an edict meeting where the parties have to agree on who must be appointed Executor. Where there is competition for the office of executor and there is lack of agreement among the parties, the Master using his discretion will appoint an independent executor from the list of professional executors in his records.
Where the deceased would have deposed to a Will, and in such will the Testator appointed his own executor, then such executor, subject to any other issues that may arise about his independence, may be confirmed by the Master. An executor’s appointment is confirmed through the issuing of Letters of Administration, which is a document simply advising the world of who is responsible for the management of a deceased person’s estate. In other words, it is a document of authority given to an executor that he has to furnish wherever questions may be asked about his authority. In particular, such a document is required by banks, former employers, local authorities or government offices in cases where the executor will be pursuing certain assets or seeking change of ownership. The executor is an independent officer whose role is to oversee management of the estate’s affairs on a temporary basis for the benefit of beneficiaries and creditors.
He must take charge of the estate by preparing an inventory of the assets as well as a valuation of such assets and lodge these with the Master. Pending the administration of a deceased’s estate, no person who has obtained judgment against the deceased person in his lifetime or against his executor in any legal suit, shall enforce such judgment within a period of six months from the date of issuing of Letters of Administration. An irresponsible, criminally minded, biased executor can be removed from office through an order of court. A valuation of the estate’s assets is necessary for guiding the Master on what may be due as his fees for the administration of the estate. An estates with many valuable assets invites huge charges in terms of Master’s fees. Those wishing to leave legacies for their families upon their demise, need to find means and ways of not prejudicing the estate through paying a lot of money to the State as Master’s fees.
A surviving spouse with a minor child, and which child is a beneficiary is prohibited from remarrying before the minor child’s shares are secured. Such marriage can only happen after the issuance of a certificate by the Master for the purposes of the marriage officer. This law exists to safeguard the interest of minor children who may end up losing their parents’ inheritance to a new step-parent. This aspect of law shall require a fuller discussion in future because it has tended to affect many innocent children in the past. n Muza is a Harare-based legal practitioner. He writes in his personal capacity.