The Risk of Doing Nothing!

There is only one big risk you should avoid at all costs, and that is the risk of doing nothing

It is the master’s discretion in every estate/curatorship/trust to request security from the person handling the administration of the estate/curatorship/trust.

As the guardian of all estates, the master’s job is to protect estate assets from unscrupulous advisers placed in fiduciary positions.

Most lay persons have little or no estate administration expertise and have to rely on professionals.

The vast majority of professionals who manage their client’s assets are capable and ethical, but what would happen if a professional did steal or act unethically whilst holding office as executor/curator/trustee?

This is why the master requests security for the asset value of the estate from the person appointed to administer the estate.

There are some instances where a person may be exempt from providing security such as a parent, spouse  or child of the deceased. However even then the master still has a discretion to request security.

If a loss were to occur arising from the maladministration by a professional, the estate work enjoy protection where an insurer has been approached for a bond of security. This bond is issued unto and in favor of the master of the guardian of the estate and is kept on his file until such time as the professional has completed his duties in office.

A premium is charged by the insurer for insuring the risk.

Talk to Shackleton Risk today about a bond of security and minimize any risk when appointing professionals to do any estate administration for you.

Subscribe now
Read More

More Articles

Why the need for TOP UP insurance?

For law firms and sole practitioners alike, it is critical that the limit of cover offered under your Professional Indemnity insurance policy is adequate for your business. We strongly recommend you review your limit to determine whether an increase in cover, beyond what may be offered by your professional indemnity fund. For attorneys this is…

Contemplating an application for the sequestration of a debtor’s estate in terms of the Insolvency Act?

An application may be launched in the High Court to sequestrate the estate of the insolvent if the creditor has a claim of R 1000 or more against the debtor. This figure hasn’t been increased for some time since the enactment of the Insolvency Act in 1936. However we can imagine only those persons with…

How Bond Claims Work

Should you suspect a loss has been suffered by an estate at the hands of a trustee / liquidator/ executor (the incumbent named on the bond of security), you should proceed to investigate it. Once your investigation is complete, you need to notify the Master of your investigations and be able to substantiate the loss…