If you run from a wolf, you may run into a bear – Lithuanian proverb.
You must pay the Commissioner before you deliver or transfer any property to any heir or legatee.
All too many times in practice, I have seen executors try everything in their power to keep the beneficiaries happy, and they put themselves at risk.
Section 18 of the Estate Duty Act (“the Act”) states the following - Before delivering or transferring any property of the deceased to any heir or legatee, the executor shall satisfy the Commissioner that due provision has been made for the payment of any duty payable under this Act.
Executors, please note the above. The act explicitly put a legal obligation on the executor to satisfy the Commissioner that due provision has been made for the payment of estate duty before any property can be transferred to beneficiaries. This makes it an interesting conundrum in practice as, practically, the only way for the Commissioner to be satisfied with the provision is for him (she – currently he) to do an assessment. Payment will then have to be made within 30 days from the prescribed payment date issued on the evaluation (except where an application for extension has been made under section 10(2) of the Act).
My point is that starting the estate duty audit as soon as possible is in your and the estate's best interest. Otherwise, the wolves will soon knock on your door.
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