Absa guide to Deceased Estates

5 Key things you need to do when a loved one passes away

Losing a loved one is not easy, and if you also have to sort out their affairs, it can seem overwhelming.
But don’t worry, this guide is here to help you.

1. Notify the relevant parties

You must report the passing of a loved one to several parties. Below are the relevant contact details for whom you should contact

The Department of Home Affairs

The Master of the High Court

The Department of Home Affairs
You will need to contact your nearest Department of Home Affairs and complete a death notification (BI-1663 form).

The following people must complete different sections of the BI-1663 form:

Signed instruction Form 7581 to be completed at your nearest Absa branch, or request submitted for the form to deceasedestates@absa.africa (including name, ID copy and contact details of requestor annotated)

Certified and dated copy of the death certificate

Certified and dated copy of the deceased’s ID

Funeral parlour invoice with an email address for the parlour (including a breakdown of expenses for the funeral payment request)

Letter from the Master/Magistrate requesting funeral cost (MBU12) with Master stamp with date

Funeral parlour bank account confirmation letter, if the funeral parlour account is not an Absa account

Please ensure that the request for the funeral payment is highlighted in the subject line as “Funeral/Burial order”.

The department of Home Affairs will issue a death certificate once registration has been completed. Contact the Department of Home Affairs for information on how to register a death and for the process of issuing a death certificate.
The deceased’s bank(s)
If your loved one had any Absa products, you can notify the Absa Deceased Estates team as soon as possible at Deceasedestates@absa.africa or by reporting the death online.

Retail Deceased Estates Credits (RDC) contact number: 0861 113 003

Please include the following:

A copy of the death certificate

Details of who the nominated person/trust/company is in the will.
The Master of the High Court
On the passing of a loved one, by law, the estate needs to be reported to the Master of the High Court in the area where the family member resided, within 14 days.

Depending on the value of the estate, the following reporting documents will differ:

If the value of the estate is above R250 000, an executor will have to be appointed to wind up the estate and a letter of executorship will be issued.

If the value of the estate is below R250 000, a Master’s representative will be appointed to wind up the estate and a letter of authority will be issued.

It is important to note that all documents need to be handed in or posted to the Master’s office. No faxed documents will be accepted by the Master of the High Court.

When completing the documents, the nominated executor must make sure that the inventory is completed accurately, and to the best of their knowledge.

Visit the Master’s website for more details on the process and required documents.

2. Appoint an executor

Once the estate has been reported to the Master of the High Court, a Letter of Authority/Letter of Executorship will be issued to the appointed Master’s Representative/executor who will assist you.
If there is no will or no nominated executor in the will, a nomination can be attended as part of the process of reporting the estate to the Master.
The executor has a duty to make sure that the estate is wound up within a reasonable time in line with applicable law. If the executor does not fulfil his/her duties, we, as the creditor in the estate, will, as a last option, take the legal action required to ensure that the executor fulfils his/her duty.

3. Wind up the estate financials

The executor/Master’s Representative is responsible for winding up the estate, ensuring that all creditors are paid and that any remaining assets or money is distributed to the heirs or beneficiaries in line with the deceased’s will.

It is important to make sure that the assets and liabilities of the deceased are accurately reflected in the inventory. In the instance where it is a S18(3) estate, where there are immovable assets, bank accounts and/or policies that are listed on the inventory, the proof of the value will have to be lodged with the inventory. If you don’t have the value of or the proof, you will need to obtain an MBU9(A) or MBU9(B) letter (completed, signed and rubberstamped) from the Master of the High Court to provide to all relevant institutions to obtain the value and to avoid any challenges down the line.

Some things to remember:

Outstanding amounts on any products the deceased had at their passing will be due and payable to Absa
Interest rates and fees may continue to accrue after the death of a client.
On the appointment of an Executor and notification thereof, we will submit a claim against the estate for any debt due.
If there is insurance, a claim will need to be submitted to the relevant insurer. Please refer to the insurance section.
If the deceased’s estate does not have sufficient funds to settle any claims against the estate, the executor will contact the heirs on the next steps.
How such claims will be settled will be discussed with the executor. More information on how these claims could be settled is further on in this guide.
If you require more information regarding the administration process, the appointed executor/Master’s representative can provide further guidance.

4. Submit any insurance claims

There are several kinds of cover or insurance that the deceased may have had, and at the time of death, they will be payable to their estate or beneficiaries nominated on the policies.

For example:

A Death Benefit
Funeral Cover
Bridging Finance
An Executor Fee Plan

Value-added benefits with their transactional account (Absa Current/Cheque Account, FlexiSave, TrueSave, Gold Value Bundle and Premium Accounts).

The executor or beneficiary can contact the Absa Life Call Centre on 0860 227 253 for more information on such payments.

If you need to submit a funeral claim before the appointment of an executor, a nominated family member must submit the following documents to any Absa branch (24 to 48 hours for the payment to reflect)

A certified and dated copy of the death certificate
A certified and dated copy of the ID of the deceased
A funeral parlour invoice (reflecting their banking details).

Claims information

Life Cover

Please mail us: lifeclaims@absa.co.za
Find more information on life cover claims requirements
Claims take approximately 25 working days (underwritten policies).

Credit Protection

Please email us: creditlifeclaims@absa.co.za
Find more information on credit protection claims requirements
Claims take approximately 15 working days.

Funeral Cover

Please email us: creditlifeclaims@absa.co.za
Find more information on funeral claims requirements
Claims take approximately 48 hours.

5. Home loans or vehicle finance

1. Home Loans

The amount outstanding on the home loan account is due to Absa and the below will apply:

First, the executor/Master’s Representative will determine whether there is credit life/life insurance on the home loan. If there is, a claim will be submitted to the insurance department.
In the absence of insurance cover, the executor/Master’s Representative will be in touch with the Deceased Estate Department to discuss options for the settlement of the debt.
Some options that could be available to settle the account balance include:
Substitution of debt or taking over the bond: This process is called the substitution of the debtor. We have set out the steps on substitution below. Please remember that this process is subject to a credit and affordability assessment.
Assistance to sell the property through Absa Help U Sell: A mandate will have to be signed by the executor and if it is a joint account, it needs to be signed by the executor and the surviving accountholder. The executor can contact the Deceased 911 team for further assistance if the estate will be using Absa Help U Sell to sell the assets.
The options for settlement may vary based on the home loan account standing at the time of the deceased's passing.

2. Vehicle Finance

What happens to the vehicle on the passing of a loved one?

The amount outstanding on the vehicle account is due to Absa and the below options will apply:

First, the executor/Master’s Representative will determine whether there is credit life insurance and submit a claim to the insurance department.

In the absence of insurance cover, the following options are available to settle the account balance:
If the executor wants to keep the vehicle, we will engage with the executor of the estate to settle the account from the estate funds.
The executor can sell the vehicle to an heir in the estate, (in the instance where the estate does not have enough funds to settle the outstanding balance on the vehicle – please be advised that the heir will have to arrange finance in his/her own personal capacity), or the executor can sell the vehicle to a third party...
If the estate has insufficient funds to settle the balance and there are no offers, we will arrange with the executor to uplift the vehicle for sale at an auction. The proceeds will be allocated to the account and if there is a shortfall on the balance, the estate will be responsible for the remaining balance.
Once the account is settled, the transfer of ownership document and paid-up letter will be delivered to the executor’s offices or to the nearest branch.

Some things to remember

Please inform the bank of the address where the vehicle will be kept while the estate is finalised.
A short-term insurance policy must be in place if the vehicle is being used during the winding-up process.
If the vehicle was settled before the deceased’s passing, contact the AVAF Document Hub at avafadmin13@absa.co.za for the transfer of ownership documents.

The following information will be required:

Contact details
Attention person
Letter of Executorship (if executor) or Letter of Authority (if Master’s representative)
Death certificate
ID copy of the deceased
Full vehicle details

Where the property is to be transferred to a surviving spouse or an heir, an application for the substitution of the debtor can be made. The application for the substitution of the debtor is the same process followed as an application for finance for a home loan and is subject to a credit and affordability assessment.

The applicant is the surviving spouse (married in community of property):
- Where the applicant is the surviving spouse, who was married in community of property to the deceased, there are certain documents that will be required for an S45 application to be considered. We will put you in touch with the applicable team to start the process.

The applicant is not the surviving spouse married in community property:
- Where the applicant is not the surviving spouse married in community of property, an application can also be made for the substitution of the debtor, and, as per the above, the application is subject to a credit and affordability assessment.

Some things to remember when applying for the substitution of the debtor:
- Municipal and levy accounts should be up to date.
- It is subject to a credit and affordability assessment.
- There are costs involved in a substitution, but it is less than normal bond registration fees.

The executor needs to give consent for the application to go ahead.

Where the homeowner’s insurance is still required, an alternative account number must be provided from where the premiums will be deducted.
The executor/Master’s Representative will need to contact the HOC Department and submit a form to move the debit order.
- Email: adminhoc@absa.co.za
- Call: 0860 100 876 (Mondays to Fridays between 07:30 and 16:30).

The executor/Master’s Representative should assist you with this process.
What you need to do to cancel the home loan:
- You can call 0860 111 007 to initiate a request for the cancellation of your bond.
- You can also visit your nearest Absa branch and request an agent to assist with the cancellation process.
- Submit the following supporting documents to start the process:
  - Letter of Executorship/Appointment
  - Executor’s ID
  - Executor’s proof of residential address
  - Death certificate
  - Deceased’s ID.
- Alternatively, you can contact your attorney who will submit all the necessary documents to Absa on your behalf.
Please note that the settlement of the home loan account is only finalised when the mortgage bond is cancelled and the homeowner's insurance has been addressed.

Deceased 911

If there is anything you are unsure of, please do not hesitate to reach out to our Deceased Estate team on 0861 113 003.
hey are available on Monday - Friday from 08:00 – 16:00.

Understanding the terminology

Estate: All the assets and the liabilities that belonged to the deceased at the time of death.
Executor: This is the person appointed by the Master and is responsible for paying all creditors within the estate and ensuring that the assets of the estate are distributed in line with the wishes of the deceased in his/her will. If there is no will, intestate succession will follow.
Intestate: If the deceased did not have a valid will in place, their estate is considered to be intestate. If an estate is intestate, it will be wound up in terms of the Intestate Succession Act 81 of 1987.
Creditor: A creditor is someone who was owed money by the client on his/her passing.
The Master: This is the person who will oversee the estate process, who is responsible for the appointment and issuing of a Letter of Executorship or Letter of Authority and who provides the necessary oversight in ensuring that the executor fulfils his/her duties in line with the laws regarding deceased estates.
Claim against the estate: This is any amount owed by the deceased on his/her passing. Claims for these amounts will be submitted to the estate by all creditors of the estate.
Letter of Executorship: This is the document that confirms the appointment of the executor. The Letter of Executorship is issued by the Master of the High Court. A Letter of Executorship is issued when an estate has a value above R250 000.
Letter of Authority: This confirms the appointment of the Master’s Representative. A Letter of Authority can be issued for an estate with a value less than R250 000 [Section 18(3) of the Administration of Estates Act].

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Contact details

Get in touch with one of our Deceased Estate consultants

Call us on: 0861 113 003

Email us at: Deceasedestates@absa.africa

Business hours: Monday to Friday (08:00 - 16:00), excluding public holidays