New Paralegal Services benefit
Guidance and advice on how to wind up a deceased estate less than R250 000
In our previous WiseUp Newsletter, we introduced the principle of a “section 18(3)” estate, which refers to deceased estates of less than R250 000 in value. It was also explained that a person known as the representative is appointed from the deceased's next of kin or in accordance with the person nominated in the deceased's Will. The representative is responsible for ensuring that the deceased estate is administered and wound up accordingly.
Although there are fewer requirements with the administration of a section 18(3) estate, it does not mean that the law can be completely disregarded. For example, family members of a deceased cannot decide to not report a deceased estate less than R250 000. All deceased estates, regardless of its size, must be reported to the Master of the High Court or through the use of an online portal.
To assist with this, the law allows for section 18(3) estates to also be reported at a Magistrate's Court in the area where the deceased was residing at the time of death. The Magistrate's Court will then assist with issuing a letter of authority to the representative who will see to the administration of the deceased estate. However, there are certain exceptions where a Magistrate's Court cannot be of assistance, unless the Master of the High Court gave the necessary authorisation, for example, where the value of the deceased estate is more than R125 000 (in areas where there is no Paperless Estates Administration System available). In areas where there is a Paperless Estates Administration System available at the Magistrate's Court, it is easier for the Master of the High Court to use that system and provide certain authorisations to ensure a more efficient procedure to be followed.
A person who is taking on the role of a representative has a lot of responsibilities and it is important to be aware of the legal requirements that must be followed. It would be to the benefit of the representative to obtain legal advice and LegalWise can come to the representative's rescue.
How can LegalWise assist?
We are very excited to announce that as from 1 July 2025 we will be expanding our Paralegal Services offering to our GoldPLUS and Platinum Members to provide further advice and guidance regarding section 18(3) estates. These Paralegal Services will only be provided as specified under the Membership Agreement. The following scenarios provide some clarity on who can be assisted:
Scenario 1
> Elenora is the Main Member on a GoldPLUS or Platinum Membership and passes away. Her deceased estate is less than R250 000.
> Elonora's nominated representative (even if they are not a LegalWise Member) may receive assistance with the administration and winding up of her estate from the in-house Legal Counsellors.
Scenario 2
> Elonora is the Main Member on a GoldPLUS or Platinum Membership. A Member linked to her Membership passes away, the estate is less than R250 000 and Elonora is nominated as the representative in the estate.
> Elonora may receive assistance with the administration and winding up of that person's estate from the in-house Legal Counsellors.
> The following Members are included under this scenario:
- Elonora's nominated Spouse (husband, wife, or life partner, as listed in the Schedule of Insurance);
- Elonora's or her spouse's biological or legally adopted children under 18 years of age;
- Elonora's or her spouse's biological or legally adopted children aged 18 up to 21, who are studying full-time at a recognised institution in South Africa and are financially dependent on Elonora or her spouse;
- Extender Members – any family member added under the Extended Family Protection Addendum, excluding those who do not qualify as a Spouse.
*Terms and conditions apply.
Did you know…The law allows for section 18(3) estates to be reported at a Magistrate's Court in the area where the deceased was residing at the time of death.