Estate Assist – Cloete Inc

Tag: estate administration

  • Can an Heir Live in the Deceased’s House Without Paying Rent?

    A person dies leaving behind a house that is meant to benefit several heirs.

    One family member is already living in the property—or moves in shortly after the death. They change the locks, exclude the other heirs, refuse to pay rent and begin treating the house as though it belongs to them alone.

    The other heirs are then told:

    “I am also an heir, so I have every right to live here.”

    But is that correct?

    Can one heir occupy the deceased’s house to the exclusion of everyone else? Can the estate claim occupational rent or damages? And can the amount owing be deducted from that heir’s inheritance?

    The answer depends on the circumstances, but an heir does not ordinarily acquire the right to take exclusive control of estate property merely because they expect to inherit from the estate.

    An Heir Does Not Automatically Own the House When the Deceased Dies

    A common misunderstanding is that ownership of the deceased’s property passes immediately to the heirs on the date of death.

    That is not how the administration process works.

    The executor must first take control of the estate assets, establish the estate’s debts and liabilities, prepare the liquidation and distribution account and distribute the remaining assets in accordance with the will or the law of intestate succession.

    Section 26 of the Administration of Estates Act places the custody and control of estate property in the hands of the duly appointed executor. South African courts have similarly confirmed that the executor must obtain control of estate assets, realise assets where necessary, settle the estate’s obligations and only then distribute what remains to the heirs.

    An heir therefore generally has a right to receive what is awarded to them through the estate administration process. They do not simply become the registered owner of a particular estate asset immediately after the death.

    This means that an heir cannot ordinarily say:

    “I inherit one-third of the estate, so I am entitled to occupy the whole house without paying anything.”

    Who Decides Who May Occupy the Property?

    While the property remains in the deceased estate, the executor is responsible for controlling and protecting it.

    The executor should establish:

    • Who is living in the property;
    • On what basis they are occupying it;
    • Whether the deceased permitted them to live there;
    • Whether the will grants them a right of occupation or usufruct;
    • Whether they are required to pay rent;
    • Who is responsible for municipal charges, levies and maintenance;
    • Whether the property should be rented, sold or transferred; and
    • Whether the continued occupation is prejudicing the estate.

    An executor is not merely an agent who must follow the instructions of whichever heir is most forceful. The executor is legally responsible for administering the estate and is the person authorised to deal with its assets.

    Does an Heir Have a Right to Live in the House?

    Possibly—but not merely because they are an heir.

    The right to occupy may arise from:

    • A lease concluded with the deceased;
    • A lease or written arrangement concluded with the executor;
    • A right of occupation contained in the will;
    • A usufruct or similar limited right;
    • Ownership of a separate share of the property;
    • The rights of a surviving spouse;
    • A maintenance claim;
    • A genuine agreement between the executor and all affected parties; or
    • Another legally recognised basis.

    The facts therefore matter.

    For example, a will may provide that the deceased’s spouse may live in the house for the rest of their life. In that situation, the spouse’s occupation is not simply unauthorised occupation by an heir.

    Similarly, where the deceased allowed a child to occupy the property free of charge for many years, it may be necessary to determine whether that permission continued after death and whether the executor properly terminated it.

    However, a family member who has no lease, no right under the will and no permission from the executor cannot necessarily remain indefinitely simply because they may inherit a share of the estate.

    What Does It Mean to “Hijack” an Estate Property?

    An heir may effectively hijack the property where they:

    • Move into it without the executor’s authority;
    • Change the locks and refuse the executor access;
    • Prevent the other heirs from entering;
    • Refuse to provide keys;
    • Prevent the property from being valued;
    • Block prospective purchasers or tenants from viewing it;
    • Refuse to leave after receiving notice;
    • Use estate furniture and assets as their own;
    • Collect rental from tenants without accounting to the estate;
    • Allow the property to deteriorate;
    • Use municipal services while the estate pays the accounts; or
    • Claim exclusive rights that they do not legally have.

    This conduct can cause substantial financial loss.

    The estate may lose rental income, incur additional municipal charges, suffer deterioration to the property or be unable to sell or transfer the house.

    Can the Estate Charge the Heir Rent?

    Potentially, yes.

    An executor may require an occupying heir to enter into a proper rental or occupation agreement. That agreement should ideally record:

    • The monthly rental;
    • The commencement date;
    • Who must pay water, electricity, rates and levies;
    • Responsibility for maintenance;
    • Access rights;
    • The period of occupation; and
    • What happens if the property must be sold or transferred.

    The executor should not permit one heir to enjoy the exclusive use of an estate asset indefinitely while the estate and the other heirs carry the cost.

    However, the executor should also avoid imposing arbitrary rental retrospectively without first establishing the legal and factual basis for the claim.

    Can the Estate Claim Occupational Rent or Damages?

    A claim may arise where the heir remains in occupation without lawful authority or refuses to vacate after their right of occupation has ended.

    Depending on the facts, the estate may potentially claim:

    • Reasonable occupational rental;
    • Damages for unlawful holding over;
    • Loss of rental income;
    • Municipal charges and utilities paid on the occupier’s behalf;
    • Damage caused to the property;
    • Costs of restoring or securing the property;
    • Rental secretly collected from third parties; or
    • Other losses directly caused by the heir’s conduct.

    South African courts recognise that an owner may claim compensation where an occupier unlawfully remains in possession after the right to occupy has ended. The amount is often linked to reasonable market rental, although the legal basis and proof of the claim remain important.

    A claim is therefore possible, but it is not automatic merely because one heir lived in the property.

    From What Date Can Rent or Damages Be Claimed?

    This is one of the most important questions.

    The claim may not necessarily run from the date of death.

    The relevant date could be:

    • The date on which the executor was appointed;
    • The date on which permission to occupy was terminated;
    • The date on which the executor demanded rental;
    • The date on which the heir was instructed to leave;
    • The expiry of an agreed occupation period;
    • The date on which the occupier began excluding the executor;
    • The date on which a sale or rental opportunity was lost; or
    • Another date determined by the particular facts.

    The executor’s position is generally stronger where the occupier has received a clear written demand stating that they must:

    1. Pay an agreed or reasonable rental;
    2. Provide access to the executor;
    3. Pay specified property expenses; or
    4. Vacate the property by a particular date.

    A court has, for example, considered an executrix’s attempt to evict an occupier who continued living in estate property without paying rent and who allegedly obstructed the administration of the estate.

    Must the Estate Prove Its Loss?

    Yes.

    The executor cannot simply choose a convenient figure and call it damages.

    The estate may need evidence showing:

    • The period of unauthorised occupation;
    • The market rental value of the property;
    • Whether the property could realistically have been rented;
    • Whether prospective tenants or purchasers were turned away;
    • The municipal charges and expenses paid by the estate;
    • Damage caused during occupation;
    • Rental received by the occupier;
    • The date permission was withdrawn; and
    • The connection between the heir’s conduct and the estate’s loss.

    An independent rental valuation from an estate agent or property practitioner may be useful.

    For a damages claim, the executor may also need to prove that the loss was actually caused by the heir’s conduct rather than merely assuming that the property would otherwise have produced income.

    What if the Heir Paid Rates, Repairs or Maintenance?

    Those payments must be considered.

    An occupying heir may argue that they:

    • Paid municipal accounts;
    • Paid levies;
    • Maintained the garden;
    • Repaired the roof;
    • Secured the property;
    • Paid insurance;
    • Prevented vandalism; or
    • Improved the house.

    This does not automatically cancel the estate’s claim. However, legitimate and properly proved expenses may have to be credited against any amount owing.

    The executor should distinguish between:

    • Necessary expenses that preserved the estate asset;
    • Ordinary living expenses that benefited the occupier;
    • Luxury improvements undertaken without authority;
    • Repairs that were never approved;
    • Amounts supported by invoices and proof of payment; and
    • Unsupported estimates.

    An heir cannot necessarily renovate the property without permission and then unilaterally deduct whatever amount they choose from the rent or damages claimed by the estate.

    Can the Other Heirs Claim Their Own Rent Directly?

    Usually, the safer approach is for the executor to pursue the claim on behalf of the deceased estate while the property still forms part of the estate.

    The property is under the executor’s control, and the financial loss is ordinarily suffered by the estate itself.

    Any amount recovered should then be brought into the estate and dealt with through the liquidation and distribution account. The benefit would ultimately flow to the heirs according to their respective entitlements.

    The other heirs should therefore normally demand that the executor investigate and act rather than each heir separately attempting to invoice the occupier for their personal percentage of the rent.

    Can the Amount Be Deducted From the Occupying Heir’s Inheritance?

    Potentially, yes—but only if the estate has a proper claim.

    Where an heir owes money to the deceased estate, the executor must account for that debt as an asset of the estate. The Administration of Estates Act requires debts due to the estate to be reflected and collected or properly explained in the estate accounts.

    In practice, an amount lawfully owing by the heir may sometimes be set off or accounted for against the inheritance due to that heir.

    For example:

    • The heir is entitled to inherit R500,000;
    • The estate has an agreed or established claim of R180,000 against that heir;
    • The heir may ultimately receive the net balance of R320,000.

    However, the executor should not simply declare that a disputed amount is owed and reduce the inheritance without a proper basis.

    What if the Heir Disputes the Claim?

    If the heir admits the debt and agrees to the deduction in writing, the matter may be relatively straightforward.

    The position becomes more difficult where the heir disputes:

    • That rent was payable;
    • The date from which it became payable;
    • The rental amount;
    • Whether occupation was authorised;
    • Whether the executor consented;
    • Whether the estate suffered any loss;
    • Whether expenses should be credited;
    • Whether the occupier had a right under the will; or
    • Whether the proposed deduction is lawful.

    The executor cannot safely act as both claimant and final judge in a genuinely disputed claim.

    Depending on the circumstances, the executor may need to:

    • Negotiate a written settlement;
    • Refer the matter for mediation;
    • Obtain legal advice;
    • Institute proceedings to establish the estate’s claim;
    • Seek eviction or other court relief; or
    • Reflect the dispute transparently in the liquidation and distribution account.

    The executor must ensure that any deduction is lawful, properly quantified and supported by evidence.

    A Practical Example

    A mother dies leaving her estate equally to her three children.

    One child remains in the deceased’s house after the death. The executor initially allows the child to remain temporarily while the estate is reported.

    Six months later, the executor informs the child in writing that:

    • The house must be sold;
    • Prospective buyers require access;
    • The child must either sign a temporary occupation agreement and pay R9,000 per month or vacate within 30 days.

    The child refuses, changes the locks and prevents viewings for another 18 months.

    An independent rental assessment places the reasonable rental at R9,000 per month.

    The starting calculation may be:

    R9,000 × 18 months = R162,000

    The estate may also have paid:

    • R24,000 in municipal charges;
    • R12,000 in levies; and
    • R15,000 to repair damage caused during the occupation.

    However, the occupier produces proof that they paid R20,000 for an essential plumbing repair authorised by the executor.

    The executor would have to consider all of these amounts carefully. The estate’s claim may not simply equal the gross rental calculation.

    Once the claim is agreed or legally established, it may potentially be accounted for against the occupying heir’s share of the inheritance.

    What if the Heir Collects Rent From Tenants?

    This can be even more serious.

    An heir may take control of the property and rent rooms, flats or outbuildings to third parties while keeping the rental income.

    That rental belongs to the estate unless the heir has a lawful agreement entitling them to it.

    The executor should demand:

    • Copies of all leases;
    • The names of tenants;
    • Rental statements;
    • Bank statements showing payments received;
    • Details of deposits held;
    • An account of expenses deducted; and
    • Immediate payment of the net rental to the estate bank account.

    An heir who collects estate income for personal use may be required to repay it and account fully to the executor.

    What if the Heir Damages the Property?

    The estate may have a separate claim for physical damage.

    Examples include:

    • Removing fittings;
    • Selling estate furniture;
    • Failing to attend to major leaks;
    • Allowing the property to become vandalised;
    • Making unauthorised structural alterations;
    • Damaging doors or locks;
    • Failing to maintain a swimming pool;
    • Permitting unlawful subletting; or
    • Removing appliances that belong to the estate.

    The executor should document the condition of the property with photographs, inspection reports, quotations and valuations.

    The claim should distinguish ordinary wear and tear from actual neglect or intentional damage.

    Can the Executor Evict the Heir?

    Potentially, yes.

    If the heir has no lawful right to remain, the executor may seek eviction so that the property can be controlled, sold, transferred or rented for the benefit of the estate.

    The executor should not resort to self-help by changing the locks while the occupier is away, removing their belongings or cutting off essential services.

    A lawful eviction process may be required, including compliance with the Prevention of Illegal Eviction from and Unlawful Occupation of Land Act.

    Recent cases confirm that executors can approach the court for eviction from property belonging to a deceased estate where the occupier has no established right to remain.

    What if the Executor Is Also the Occupying Heir?

    This creates a serious conflict of interest.

    An executor who lives in the estate property must still act in the interests of the estate and all its beneficiaries.

    Warning signs include an executor who:

    • Lives rent-free without proper authority;
    • Uses estate funds to pay their household expenses;
    • Prevents the property from being sold;
    • Refuses to disclose rental arrangements;
    • Excludes the other heirs;
    • Delays the estate for personal benefit;
    • Fails to account for occupation in the liquidation and distribution account; or
    • Uses their position to secure the property for themselves.

    An executor is not free to treat estate property as their own. Serious misconduct, conflicts of interest or failure to administer the estate properly may justify a complaint to the Master or, in appropriate circumstances, an application for removal.

    What Should the Other Heirs Do?

    The heirs should place their concerns before the executor in writing.

    They can request:

    • A copy of the will;
    • The Letters of Executorship;
    • Confirmation of the occupier’s legal basis for remaining;
    • A copy of any lease or occupation agreement;
    • Details of rental being paid;
    • Municipal and levy statements;
    • Confirmation of who holds the keys;
    • Information about any rental collected;
    • A valuation of reasonable market rental;
    • Confirmation of whether the property will be sold or transferred; and
    • An explanation of how any claim against the occupier will be dealt with in the estate account.

    The complaint should be specific.

    Instead of merely saying:

    “My brother has hijacked the house,”

    the heir should explain:

    “My brother has occupied the estate property exclusively since March 2024, changed the locks, refused the executor access, paid no rental and prevented two prospective purchasers from viewing the property.”

    That gives the executor, the Master or a court something concrete to investigate.

    The Executor Must Act Before the Loss Escalates

    An executor should not allow the situation to continue indefinitely.

    The longer an unauthorised occupier remains:

    • The larger the potential rental claim becomes;
    • The more difficult the evidence may be to reconstruct;
    • The greater the municipal and maintenance costs become;
    • The more likely the property is to deteriorate;
    • The harder it may be to sell or transfer the property; and
    • The greater the conflict between the heirs becomes.

    The executor should establish the occupation terms early and put them in writing.

    Where the occupier refuses to cooperate, the executor should obtain advice and take proportionate action rather than allowing one heir to control an asset belonging to the estate.

    The Important Distinction

    There are two incorrect assumptions:

    Incorrect assumption 1:
    An heir may live in the whole property for free because they will inherit part of the estate.

    Incorrect assumption 2:
    The executor may automatically charge any amount they choose and deduct it from the heir’s inheritance.

    The correct position lies between these extremes.

    An heir’s expected inheritance does not ordinarily give them the right to occupy the estate’s property exclusively and without accountability.

    At the same time, any claim for occupational rent, damages or expenses must be legally justified, properly calculated and fairly dealt with.

    Need Help With an Heir Occupying Estate Property?

    Disputes over the family home can delay an estate for years and significantly reduce what ultimately remains for the beneficiaries.

    Before deciding what action should be taken, it is necessary to establish:

    • Who owns the property;
    • What the will provides;
    • Who the lawful heirs are;
    • Whether the occupier has a legal right to remain;
    • Whether the executor authorised the occupation;
    • Whether the estate has suffered a measurable loss;
    • Whether rental or damages can be proved;
    • Whether expenses must be credited; and
    • Whether the claim can lawfully be accounted for against the occupier’s inheritance.

    Estate Assist can review the relevant documents, assess the executor’s handling of the property and assist in determining the appropriate steps to protect the estate.

    Contact Estate Assist if an heir has taken control of estate property, refuses to pay rent, excludes the other heirs or prevents the estate from being finalised.

    This article provides general information about South African deceased-estate law. The legal position depends on the will, the rights of the occupier, the conduct of the executor and the evidence available. It should not be treated as legal advice for a specific estate.

  • What If the Bank Is Executor and the Estate Is Not Moving?

    When a bank executor is dealing with a deceased estate, heirs and family members may feel helpless if the estate is not moving forward. The executor is responsible for administering the deceased estate properly and bringing the estate to finalisation.

    In many wills, a bank is nominated as the executor. This is common, especially where the will was prepared through the bank many years ago. In some matters, this works smoothly. In others, heirs and family members become frustrated because the estate appears to be standing still, communication is poor, or nobody seems to be taking practical responsibility for moving the matter forward.

    This can be extremely stressful for families, especially where there are dependants, outstanding expenses, estate property, vehicles, bank accounts, municipal accounts, or other practical matters that need attention.

    Why a Bank May Be Appointed as Executor

    A bank may be nominated as executor in a will where the deceased signed a will through the bank, used the bank’s estate planning services, or agreed to appoint the bank as the professional executor.

    After death, the nominated executor must still be formally appointed by the Master of the High Court before it can act officially. Once appointed, the executor must take control of the estate administration process and deal with the assets, liabilities, estate bank account, advertisements, liquidation and distribution account, heirs, creditors and final distribution.

    Common Problems Families Experience

    Families often contact us when they feel that the estate is not moving forward.

    Some of the common complaints include:

    • they do not receive proper updates;
    • they cannot get hold of the correct person;
    • the estate is handled by a department rather than a specific person they can speak to;
    • documents are requested more than once;
    • months pass without visible progress;
    • heirs are unsure whether the estate has been reported properly;
    • the family does not know whether Letters of Executorship have been issued;
    • the estate bank account has not been opened;
    • the liquidation and distribution account has not been prepared;
    • the Master’s Office has raised queries and nobody appears to be resolving them;
    • the heirs feel that the matter is not receiving urgent attention.

    Not every delay is the executor’s fault. Deceased estates can be delayed by missing documents, Master’s Office backlogs, disputes between heirs, tax issues, property transfers, creditor claims, bond cancellations, municipal figures and other practical problems.

    However, heirs are entitled to proper communication and reasonable progress. A deceased estate should not simply disappear into a system with no meaningful feedback.

    Can the Bank Be Removed or Replaced?

    In certain circumstances, it may be possible for the bank to step aside or renounce its appointment, especially where the heirs and interested parties agree that another suitable person or professional should take over the administration.

    This depends on the facts of the matter, the wording of the will, whether the bank has already been formally appointed, what work has already been done, and whether the Master will accept the proposed change.

    It is not always as simple as sending one email and demanding that the bank be removed. The correct process must be followed, and the Master’s Office must be dealt with properly.

    Where the matter is handled correctly, however, it may be possible to move the estate from a slow or inactive administration process into a more practical and hands-on process.

    We Have Assisted in Matters Like This

    Estate Assist by Cloete Inc has assisted families in matters where a bank had been appointed or nominated as executor, but the heirs were unhappy with the progress of the estate.

    In appropriate matters, we have helped clients engage with the bank, obtain clarity, deal with the necessary documents, and where possible, assist with the process of having the estate administration moved into more active hands.

    In several matters, once the administration was taken over or properly driven forward, the estates were finalised much more quickly and efficiently, and the clients were very satisfied with the outcome.

    Every estate is different, but the important point is this: heirs do not have to remain completely passive where an estate is not progressing.

    What Should Heirs Do First?

    If the bank is the executor and you are concerned about the lack of progress, it is useful to first establish the basic facts.

    You should try to confirm:

    • whether the estate has been reported to the Master;
    • whether Letters of Executorship have been issued;
    • who exactly is handling the estate;
    • whether an estate bank account has been opened;
    • what documents are still outstanding;
    • whether any advertisements have been placed;
    • whether the liquidation and distribution account has been prepared;
    • whether the Master has raised any queries;
    • what the expected next step is;
    • whether the heirs have received a proper written update.

    It is usually better to request a clear written update rather than relying only on telephone conversations.

    Warning Signs That the Estate May Need Attention

    Families should consider getting assistance if:

    • months have passed with no proper explanation;
    • the executor does not respond to reasonable requests;
    • heirs receive vague or repeated excuses;
    • no one can explain what the next step is;
    • the Master’s Office has raised queries that are not being resolved;
    • the estate has assets or debts that require urgent attention;
    • property, vehicles or accounts are deteriorating or causing further losses;
    • heirs are being left in the dark;
    • there appears to be no practical plan to finalise the estate.

    A delay by itself does not always mean there is wrongdoing. But a lack of communication and lack of progress should be taken seriously.

    Can Estate Assist Help?

    Estate Assist by Cloete Inc assists families, heirs, executors and authorised representatives with practical deceased estate administration support.

    This may include:

    • reviewing the current status of the estate;
    • helping heirs understand what should have happened by now;
    • preparing practical follow-up requests;
    • engaging with the executor or nominated executor;
    • assisting with Master’s Office follow-ups;
    • helping obtain clarity on Letters of Executorship or Letters of Authority;
    • assisting with estate administration steps;
    • helping families understand whether a change of executor may be possible;
    • supporting the process where an estate needs to be moved forward urgently.

    We do not believe families should be left confused, ignored or helpless when a deceased estate is not moving.

    Final Thought

    A bank can be appointed as executor, but that does not mean the estate should remain stuck indefinitely.

    If the estate is not progressing, heirs should first obtain proper information, identify the cause of the delay, and then consider the correct steps to move the matter forward.

    In some cases, the issue may simply be missing documents or a misunderstanding. In other cases, more active intervention may be needed.

    If you are dealing with a deceased estate where the bank is the executor and nothing seems to be happening, Estate Assist by Cloete Inc may be able to help you understand your options and take practical steps to move the estate forward.

    Estate Assist by Cloete Inc
    Phone / WhatsApp: 081 330 7820
    Email: admin@cloeteinc.co.za
    Website: estateassist.co.za