Letters of Executorship vs Letters of Authority: What’s the Difference?
When someone passes away, their estate cannot be touched, not even by a spouse, until the Master of the High Court issues one of two documents: a Letter of Executorship or a Letter of Authority.
Both give someone the legal power to act on behalf of the estate, but they apply to different situations and follow different processes. Knowing which one applies to your family’s situation helps you understand what to expect, and how long it might take.
What Is a Letter of Executorship?
A Letter of Executorship is issued for estates with a gross value above R250,000. It appoints an executor, either the person named in a valid will or someone nominated by the family, and gives that person full legal authority to administer the estate. This is the more formal of the two routes.
The executor must report the estate to the Master of the High Court, advertise for creditors in the Government Gazette and a local newspaper, compile an inventory of assets and liabilities, settle debts, and prepare a liquidation and distribution account before anything can be paid out to heirs.
For a full breakdown of each stage, our step-by-step guide to winding up a deceased estate covers the process from reporting the death through to final distribution.
What Is a Letter of Authority?
For smaller estates, those with a gross value of R250,000 or less, the Master may dispense with a full executorship and issue a Letter of Authority instead. This is often referred to as an “18(3) estate,” named after the section of the Administration of Estates Act that allows for the shortcut.
Rather than an executor, a Master’s Representative is appointed, and the process is considerably lighter. There is no requirement to advertise for creditors and no formal liquidation and distribution account to prepare, which means smaller estates can usually be finalised faster and at a lower cost.
How the Master Decides Which Applies
The deciding factor is the gross value of the estate, not whether a valid will exists. An estate can require a Letter of Executorship whether or not there was a will in place, and the same applies to a Letter of Authority. Having a valid will does, however, remove a great deal of uncertainty around who the Master will appoint.
Where no will exists, the family must reach agreement on a nominee, which can add delay. We’ve covered what happens when someone dies without a will in place, including how the Master decides who to appoint in those circumstances.
Documents You’ll Need Either Way
Both processes start with reporting the estate to the Master, and the paperwork overlaps considerably. You’ll typically need a certified copy of the death certificate, the deceased’s identity document, the original will (if one exists), and a completed inventory of the deceased’s assets and liabilities. The Master’s office will also want to know whether the estate has any outstanding tax matters, since SARS must be notified of the death regardless of whether estate duty ends up being payable.
Whichever route applies, the executor or representative is also entitled to charge a fee for the work involved. Our breakdown of executor and legal fees explains what’s regulated by law and what’s negotiable.
Getting It Right the First Time
Whether your family is dealing with a Letter of Executorship or a Letter of Authority, incomplete paperwork is the single biggest cause of delay at the Master’s office. A properly drafted will, reviewed against the common mistakes families make in estate planning, goes a long way toward avoiding disputes later.
RCS Law’s wills and estate planning services team assists both executors and Master’s Representatives through the reporting and administration process, so nothing gets held up over a missing form.