This blog examines the conditions for submitting a late claim and offers guidance on the process of assessing such claims.

Introduction

Submitting claims within the specified timeframe is a crucial step for creditors, and it is the executor's responsibility to ensure the publication of the creditor’s notice for submission and facilitate the claims process. Section 29(1) of the Administration of Estates Act 66 of 1966 (referred to as Estates Act) establishes the requirement for creditors to submit their claims to the executor within a specific timeframe. The notice should include a timeframe of not less than 30 days nor more than three months from the date of the latest publication of the notice.

In this blog, we will explore the scenario in which a creditor fails to submit a claim within the timeframe mentioned in the notice. Section 31 of the Estates Act provides a provision that allows a creditor to submit a claim outside of the timeframe of the notice period. However, besides the conditions set out in section 31, there are other considerations that need to be taken into account with the submission of such a claim.

Nature of a late claim

Even in the case of a late claim, it is still necessary for the claim to be provable. Section 29(2) of the Estates Act refers to these claims as similar to those in the context of insolvency, specifically liquidated claims. This means that any claim with a specific monetary value can be lodged against the estate.

Claims against a deceased estate can encompass a wide range of obligations, including amounts owed for loans, services rendered, or goods sold to the deceased. The nature of the claim may involve fixed amounts, court-determined damages, or settlements agreed upon between the executor and the claimant.

Consideration of a late claim and acceptance process

The role of the executor in handling claims against the estate involves a careful examination of each claim to determine whether it should be accepted or not. In certain cases, the executor may request the creditor to provide the necessary evidence or proof to support their claim.

In the case of Van Niekerk v Van Niekerk [2011] 2 All SA 635 (KZP), it was established that executors have a duty to assess claims against the estate in a fair manner, taking into account both the factual and legal aspects of each claim. The court emphasised that claims should not be rejected without sufficient cause or justification. It is worth noting that executors with a conflict of interest may encounter challenges in providing an unbiased assessment of claims.

To gather additional information about a claim, the executor has the right to request a sworn affidavit from the claimant in terms of section 32(1) of the Estates Act. This affidavit should detail when the claim originated, the reasons behind the claim, and the specific amount being sought.

Furthermore, the executor has the legal authority to question the claimant under oath, either in front of the Master or a Magistrate. There are established procedures for conducting such questioning before the Master, which are simpler and less formal than resorting to full-fledged litigation [see sections 32(2)-(4)].

If a claim is accepted by the executor, it is customary to provide notice of acceptance to the claimant. This notice can be sent via registered mail, delivered in person, or sent electronically through email.

If the claim is rejected, the executor is obligated in terms of section 33 to inform the creditor of the rejection along with the reasons for it through registered post.

Conditions that apply to the submission of a late claim

Section 31 of the Estates Act provides guidance on what happens when a claimant fails to submit their claim against a deceased estate within the specified timeframe mentioned in Section 29(1). This section outlines two conditions that apply to the submission of a late claim.

Firstly, according to Section 31(a), if the claimant cannot provide a reasonable excuse for the delay to the Master, they will be held responsible for any costs related to adjusting the accounts or any other expenses resulting from the delay. Otherwise, these costs will be payable from the estate.

Secondly, Section 31(b) states that regardless of whether the claim is submitted late or not, the claimant cannot demand repayment from any other claimant for any funds previously paid to that claimant based on a valid claim against the estate. In other words, if payments have already been made to another claimant before or during the time the late claim was lodged, the claimant submitting the late claim cannot seek repayment from those funds.

Conclusion

In summary, section 31 of the Estates Act establishes the requirements for submitting a late claim against a deceased estate. To proceed with a late claim, the claimant must meet two conditions: provide a reasonable excuse for the delay and acknowledge that prior payments made to other claimants based on valid claims cannot be reclaimed. Additionally, the late claim, like any claim within the section 29 timeframe, must be a liquidated claim. 

The executor's responsibility is to diligently evaluate each creditor's claim, requesting additional evidence if needed, conducting questioning, and making an informed decision to accept or reject the claim. It is imperative for the executor to follow proper procedures and ensure fairness throughout the process.