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.
Share this article
Many years were spent debating whether or not advocates should be allowed to approach the public directly. Historically members of the public would brief an attorney who would then approach an advocate to argue a case before a court. This was known as the “referral system”. Finally the Minister of Justice publicised the DOJ’s plans…
1. Why do I need a professional indemnity policy? Professional Indemnity policies provide cover to professionals that offer advice or professional services to the public. Clients that seek advice from professionals expect the advice they are given to be accurate and appropriate for their needs. If it is not, the client may hold the professional…
VAT explained Value Added Tax (VAT) is a secondary tax that is charged on the consumption of goods and services in the economy. In the context of medical practitioners, VAT is charged on the consumption of your services (the provision of healthcare). This means that a portion of your revenue is paid to SARS as…