This blog outlines the legal requirements and procedures for an executor to apply for an extension of the submission date for the L&D account under regulation 6 of the Administration of Estates Act 66 of 1965. It also discusses the process of reviewing and deciding on extension applications at the Master's Office.

Introduction

According to section 35(1) of the Administration of Estates Act 66 of 1965, the executor is legally required to submit a formal accounting of the winding-up of the estate to the Master, including a properly drafted liquidation and distribution account (L&D Account). This must be done within 6 months from the date stamp on the appointment letter, called the Letters of Executorship. Failure to do so can result in the Master taking steps to remove the executor from their office, and the executor may also be held personally liable for any losses.

However, under regulation 6 of the Estates Act, the executor can apply to the Master for an extension of the lodgment period for the L&D Account, provided they have good reasons for being unable to submit it within the required time. The Master will consider each case on its merits to determine whether an extension of the submission date should be granted. In this blog, we will explore these requirements and the actions taken by the Master.

Requirements for a successful application

To successfully apply for an extension of the submission date for the L&D Account, the following requirements must be met:

• The application must be in writing and addressed to the Master.
• Necessary supporting documents must be attached to the application letter.
• The application letter and its supporting documents must be sent by registered post or courier and delivered to the office of the Master before the submission date of the L&D Account.
• The written application must state the reasons why the L&D Account cannot be rendered within the 6-month period mentioned in section 35(1) of the Act. For example, the final assessment of SARS is still outstanding, or certain monies are still outstanding that will be paid into the estate's banking account.
• The application should outline the steps taken by the executor to expedite the submission of the L&D Account and the progress made in the liquidation or realisation of the estate.
• The application should confirm the moneys that the executor has in hand or that have been deposited in the account or savings account opened in the name of the estate.
• The application must give reasons why an interim L&D Account should not be submitted to the Master.
• The application should confirm whether the estate is solvent or insolvent.

By meeting these requirements, the executor can increase their chances of receiving an extension of the submission date for the L&D Account.

Procedure at the Master’s Office

The procedure at the Master's Office involves an official known as an examiner who reviews the executor's formal written application. If the application is in order, the examiner sends it to their supervisor, the Assistant-Master, who makes the final decision. Each branch may have different approaches, but as a general rule, Assistant-Masters will not grant more than a 3-month extension. Some may grant an extension on the condition that the executor can request another extension if necessary. If the Assistant-Master is not convinced that proper reasons were given for the delay, they may refuse the application and issue a final demand for the submission of the final L&D Account. Alternatively, the Assistant-Master may ask for the immediate submission of an interim L&D Account if they believe that the executor can account for certain properties and that the property causing the delay can be shown in a second and final L&D Account later on.

Conclusion

In conclusion, submitting a Liquidation and Distribution Account within the 6-month required timeframe is a legal obligation for executors. However, under regulation 6 of the Estates Act 66 of 1965, executors can apply for an extension of the submission date if they have good reasons for the delay. Meeting the requirements for a successful application can increase the chances of receiving an extension. 

The process of reviewing and deciding on extension applications involves an examiner and the Assistant-Master at the Master's Office. Each case is considered on its merits, and the decision to grant an extension is discretionary. It is essential for executors to follow the requirements and procedures outlined in this blog to ensure a successful application.