EDUCATIONAL SERIES

Assets and Liabilities in the Deceased Estate

How to Handle Debts, Creditors, and Claims Against the Estate
Infosheet 11 of 28

Before a single cent of inheritance can be paid out, every debt the deceased owed must be identified, verified, and settled. This is not optional, and it is not something that can be negotiated around. It is a legal requirement, and executors who get it wrong can be held personally liable.

South African law requires the executor to advertise for creditors — giving anyone with a valid claim against the estate the opportunity to come forward. Only once those claims have been reviewed and legitimate debts settled can the estate move toward distribution.

This infosheet explains how debts and liabilities are handled in a deceased estate: how creditors are notified, how claims are verified, in what order debts are paid, and what happens if the estate does not have enough to cover everything. It is an important part of the process for any estate that involves outstanding accounts, loans, or other liabilities.

1 Identifying Debts

Common liabilities include:

  • Home loans
  • Credit cards
  • Personal loans
  • Medical bills
  • Municipal accounts
  • Store accounts
2 Advertising for Creditors

Once the Letter of Executorship is issued, the executor must:

This protects the estate from future disputes.

  • Publish notices in the Government Gazette and a local newspaper in terms of Section 29 of the Administration of Estates Act
  • Allow creditors 30 days to lodge claims
3 Verifying Claims

The executor must check:

Invalid or inflated claims may be rejected.

  • Whether the debt is valid
  • Whether the amount is correct
  • Whether supporting documents are provided
4 Paying Debts

Debts are paid from:

If the estate is insolvent, special rules apply.

  • Cash in the estate
  • Proceeds of asset sales
  • Policy payouts (if payable to the estate)
5 Maintenance Claims

Maintenance claims in the deceased estate are treated as a creditor claim. Actuarial reports may be needed for the Master to verify these claims.

6 Why This Step Matters
  • Creditors must be treated fairly
  • Executors can be held personally liable for mistakes
  • Beneficiaries cannot receive assets until debts are settled

A Note From Our Practice

Losing someone you love is hard enough. The legal process of winding up their estate should not be a source of additional confusion or anxiety. But for most families, it is.

Estate administration in South Africa is a structured legal process governed by the Administration of Estates Act and a range of other legislation. It involves the Master of the High Court, SARS, financial institutions, the Deeds Office, and more. It takes time. It requires documents. And it can feel, at every turn, like a system that expects you to already know how it works.
We created this educational series because we believe informed families make better decisions and because the questions we are asked most often are the same ones that could be answered before a client ever walks through our door.

The CDT Educational Series consists of 28 infosheets covering the full spectrum of deceased estate administration, from the first 72 hours after a death to the final distribution of assets. Each infosheet is written in plain language, without jargon, and is designed to give you a clear picture of what the process involves and why each step exists.

Important: These infosheets are educational resources. They provide general information about the estate administration process in South Africa and are not intended as legal advice. Every estate has its own facts, complexities, and circumstances. Nothing in this series should be relied upon as a substitute for professional legal guidance specific to your matter.

Our intention is simple: to help you understand the landscape, ask the right questions, and feel confident when you come to us for help. Because when you are ready, we are here.

Cari du Toit & Aqeela Peters

Directors
Cari du Toit Incorporated Attorneys & Conveyancers