Why Some Wealthy Estates Take Years to Wind Up

Johannesburg, 26 May 2025 – In South Africa, the admin of winding up a deceased estate takes around a year – and sometimes several years – before assets are transferred to heirs. These delays can sometimes determine if heirs can keep a family business running, or if it will be another story of wealth that dissipated after the first generation. While there are various reasons for delays, the common cause is a lack of liquidity in the estate to settle debts or pay administration expenses.

Nokuzola Cossie, Head of Fiduciary at Standard Bank Wealth and Investment in South Africa, says many affluent clients own a range of high-value assets – from holiday homes to farms and have interests in various businesses. Yet despite their wealth, estate planning is often limited to a single document: a Will.

“A valid Will is important as it gives clear instructions on who should inherit which assets. However, to ensure that wishes are effective it is vital to determine how practical those intentions are,” she explains.

Asset-rich, cash-poor: a common pattern

Cossie estimates that nearly 90% of the estates she deals with are asset-rich but cash-poor. “It’s easy to see why – people invest in assets they believe will grow in comparison to cash, leading to lack of liquidity in many estates,” she explains.

Many affluent clients leave high-value properties to heirs without enough cash to cover estate expenses which include – but are not limited to – fees associated with transfer of a property, Master’s fees, estate duty, capital gains tax, etc.

“Some clients have share portfolios that the executor can liquidate, but what if the said portfolio is bequeathed to an heir? This may result in a forced sale resulting in the bequest failing,” says Cossie. “While most estates tend to have a shortfall, the question is, how do you best solution for this?”

Liquidity may not be the only stumbling block – Cossie says it’s equally important to consider whether the wishes of the person leaving the inheritance are practical and can realistically be carried out. one needs to consider how practical the testator or testatrix’s wishes are?

Good intentions, but impractical

Another trend complicating the winding up of affluent estates, says Cossie, is parents leaving a single asset – often a sentimental home – to multiple heirs. For example, a holiday house left to three children, one of whom lives abroad, seems like a noble intention but often leads to conflict.

“The problem arises when they’re not aligned on what to do. What if one wants to sell, another wants to keep it but can’t afford the upkeep, or one passes away – does their spouse inherit their share?” she asks.

A better approach, she suggests, is placing such assets in a trust, preferably with an income producing asset, if the intent is not to rent the property out. Alternatively, the property could be rented out – even on short-term basis – allowing the trust to generate income to cover its maintenance costs and preserve the asset without burdening heirs. This practical view is often overlooked when Wills are drafted.

“It’s understandable – drafting a Will usually follows a major life event, like a birth of a child, death of someone you know or a life altering event such as a diagnosis of a terminal disease. In that moment, people rarely stop to consider how practical their wishes are,” adds Cossie.

To help clients balance sentiment with strategy, Standard Bank Wealth and Investment pairs wealth managers with fiduciary specialists. This ensures estate plans align with financial realities. She says this ensures that a legacy isn’t just about assets, but also about foresight and planning.