On 24 November 2014 a Notice was published in the Government Gazette that the minister of Justice and Correctional Service has amended the value of the Estates to be dealt with in terms of Section 18(3) of the Administration of Estates Act 66 of 1965. The amount has now increased to R250000.00.
The Administration of Estates Act 66 of 1965 provides in Section 18(3) that if the value of and estate is less than R125000.00, the Master of the applicable High Court where the estate is reported shall issue directions as to the manner and way in which the estate shall be dealt with and the funds disbursed.
The amendment to the Act by increasing the value of Section 18(3) Estates will result in a lot of savings as these estates under R250000.00 in value will no longer be considered full estates that require advertising and estate accounts to be filed etcetera.
One still has to bear in mind that should the heirs / executor of the Estate sell immoveable property, the letter of authority for the sale will still have to be obtained from the Master of the High Court in those instances where the value of the Estate is worth R250000.00 inclusive of the immoveable property and all other assets.
Where the value of the Estate is in excess of R250000.00, Letters of Executorship are to be obtained for the Sale and Administration accordingly and the normal rules and regulations governing the Administration of Estates Act shall apply.