Page 30 - Nexia SAB&T Property and Tax Guide 2025

DECEASED ESTATES AND IMMOVABLE PROPERTY

When a person, who owns immovable property registered in his name at the date of his
death, passes away, a number of scenarios may arise, as follows:
WHERE A PERSON DIES LEAVING A VALID LAST WILL AND TESTAMENT:
◆ A valid Last Will and Testament, in most cases, nominates an Executor to
administer the estate (or a Master’s Representative where the estate value is
R250 000 or less).
◆ The immovable property will be transferred to the heir/s or beneficiaries as per
the provisions of the Last Will and Testament.
◆ If the property is subject to a mortgage bond, and where no mention is made
of a bond on the property, the Executor is required to settle the bond from the
estate residue, and only then is he able to transfer the property to the heirs or
beneficiaries, simultaneously with the cancellation of the bond.
◆ To protect any beneficiaries or heirs who are minors (under 18 years old), a
testator may wish to set up a testamentary trust in his Last Will and Testament.
◆ Where agricultural property is bequeathed, the testator needs to be aware of
Section 3 of the Subdivision of Agricultural Land Act (70 of 1970), which prevents
the subdivision of agricultural land, and such land being registered in undivided
shares in more than one person’s name. This is especially relevant when the
testator is considering bequeathing agricultural land to more than one beneficiary.
◆ If a testator bequeaths his immovable property to a number of heirs in equal
shares (or otherwise), this may give rise to impracticalities due to the indivisibility
of the bequest, and may give rise to a redistribution agreement being drawn up
between the heirs.
◆ To save costs and time, to protect beneficiaries/heirs, and ensure that a person’s
wishes are carried out, it is imperative that he executes a valid Last Will and
Testament.

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