Does a Sars refund form part of the deceased estate?

Dear reader,

I am sorry for your loss, and your question highlights how complex estate administration can be.

When someone passes away, all money received – including refunds or payments from Sars – becomes part of the deceased estate.

That means any money from Sars owed to your husband is paid into the estate late bank account and legally forms part of the pool of assets to be dealt with in terms of the will and estate laws.

Before any money can be paid out to beneficiaries (whether you as the spouse or his daughters), the executor must first settle:

1. All debts owed by the deceased (including taxes, funeral costs, and administration fees);
2. All estate administration costs; and
3. Any specific bequests or instructions in the will.

Only once these are settled does the executor distribute what’s left – known as the residue – according to the instructions in the will.

So, to answer your questions:

• Yes, money from Sars forms part of the estate and must first be used to settle estate costs and debts if necessary.
• Yes, if the will says that all cash should go to his two daughters, then that includes the money from Sars – unless the will specifically makes provision for you or directs otherwise.

If you are not named as a beneficiary in the will, you may still have a claim against the estate (for example, under the Maintenance of Surviving Spouses Act) if you were financially dependent on your husband.

It would be advisable to speak with the executor or consult a legal professional if you are unsure of your rights.