When a deceased estate is reported in South Africa, the person dealing with the estate usually needs formal authority from the Master of the High Court before assets can be administered or distributed.
Two terms families often come across are Letters of Authority and Letters of Executorship. They sound similar, but they are not the same.
Understanding the difference is important because it affects who may deal with the estate, what process must be followed and what banks, insurers, creditors and other institutions may require.
1. Why formal authority is needed
A family member cannot simply take control of estate assets because they are related to the deceased.
The estate must be dealt with by a properly authorised person. The Administration of Estates Act provides that a deceased estate may not be liquidated or distributed unless this is done under letters of executorship or under a direction by the Master.
This is why banks and other institutions usually require proof of appointment before they will release information, close accounts or pay estate funds.
2. What are Letters of Executorship?
Letters of Executorship are issued by the Master of the High Court when a person is formally appointed as executor of a deceased estate.
This usually applies where the estate is above the small-estate threshold or where the estate requires the full administration process.
The Department of Justice explains that if the value of the estate exceeds R250,000, Letters of Executorship must be issued and the full process under the Administration of Estates Act must be followed.
The executor is then responsible for administering the estate properly, which may include:
- identifying assets and liabilities;
- opening an estate late bank account where required;
- dealing with creditors;
- preparing and lodging the Liquidation and Distribution Account;
- communicating with heirs and relevant institutions;
- distributing the estate once legally permitted.
3. What are Letters of Authority?
Letters of Authority are generally used for smaller estates where the Master may dispense with the full executorship process.
The Department of Justice notes that where the estate is less than R250,000, the Master may dispense with Letters of Executorship and issue Letters of Authority in terms of section 18(3) of the Administration of Estates Act.
A person appointed under Letters of Authority is often referred to as the Master’s representative.
This process is usually simpler than a full executorship, but the representative must still act properly and within the authority given by the Master.
4. Main difference between the two
The simplest way to understand the difference is this:
Letters of Executorship are used for estates that require the full estate administration process.
Letters of Authority are usually used for smaller estates where the Master gives directions under section 18(3).
Both documents give authority to deal with the estate, but they are not interchangeable. The value and circumstances of the estate will determine which appointment is required.
5. Which one do banks and institutions require?
Banks, insurers and other institutions will usually ask for either:
- Letters of Executorship; or
- Letters of Authority.
They need to know that the person giving instructions has been appointed by the Master.
If the wrong document is supplied, or if no appointment has been issued yet, the institution may refuse to release information or process payments.
6. What documents may be needed when reporting the estate?
The reporting documents may differ depending on the value and circumstances of the estate.
The Department of Justice lists documents that may be required when reporting an estate, including the Death Notice, death certificate, marriage documents where applicable, nominations by heirs where needed, acceptance forms, inventory information and other supporting documents.
The Department of Justice forms page also confirms that a Letter of Authority under section 18(3) and a Letter of Executorship under sections 13 and 14 must be obtained from the Office of the Master.
7. Can the appointment change later?
Yes, it can happen in certain circumstances.
For example, if an estate was initially treated as a small estate but it later becomes clear that the assets exceed the relevant threshold, the matter may need to be dealt with differently.
The standard section 18(3) undertaking also refers to the representative undertaking not to administer assets not reflected in the inventory and to report to the Master if the value of the assets exceeds R250,000.
This is one reason why it is important to identify the estate assets and liabilities as accurately as possible when the estate is reported.
8. Why this distinction matters
The difference between Letters of Authority and Letters of Executorship affects the whole administration process.
It can affect:
- what forms must be completed;
- who may deal with estate assets;
- whether a full Liquidation and Distribution Account is required;
- how creditors and heirs are dealt with;
- how long the process may take;
- what banks and institutions will accept.
Families often experience delays because they are unsure which process applies or because the estate was not reported with the correct supporting information.
Need help with a deceased estate?
Estate Assist by Cloete Inc assists families, executors and authorised representatives with practical deceased estate administration support.
We assist with estate reporting guidance, Master’s Office follow-ups, estate financial administration, Liquidation and Distribution Account support and estate finalisation assistance.
Phone / WhatsApp: 081 330 7820
Website: estateassist.co.za
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