Redistribution Agreements (RDAs) provide beneficiaries with flexibility to alter inheritances and redistribute estate assets in a manner that better suits their needs. This practical course explores the legal framework, requirements, risks, and practical application of RDAs in deceased estates, including the executor's role and transfer procedures.
Redistribution Agreements have evolved into a valuable estate administration and estate planning tool, allowing beneficiaries and surviving spouses to restructure inheritances after death. Through the use of RDAs, beneficiaries may exchange, sell, donate, or otherwise redistribute their inheritance rights, and in certain circumstances introduce non-estate assets to facilitate an equitable distribution. This practical course examines the legal requirements, limitations, and practical implementation of RDAs within deceased estates. Participants will gain a thorough understanding of the executor's responsibilities, beneficiary rights, transfer procedures, compliance requirements, and the interaction between Redistribution Agreements, the Liquidation and Distribution Account, and the transfer of immovable property. Practical examples and case studies will be used throughout the session to demonstrate how RDAs can be effectively implemented while remaining legally compliant.
Key Topics Covered:
Background & legal requirements for RDAs
• What is an RDA and how does it work?
• Legal requirements for redistributing
• Who enforces an RDA?
• What is the timeline of enforcing an RDA?
What is an RDA and how does it work?
• What methods of redistribution is available
• What if there are three beneficiaries?
• Practicality of sharing co-ownership of the assets
• Prohibition of award of farmland to more than one beneficiary
• What solutions are available?
Legal requirements for RDAs
• What are the Executor’s responsibilities
• Lawfulness and unlawfulness of redistributions
• What consent must be given
• Is the L&D Account in line with the RDA’s awards
Who is required to enforce the RDA?
• S14(1)(b)(iii) of the Deeds Act defines an RDA as an agreement entered into by beneficiaries and/ or the surviving spouse
• The executor transfer to award
Enforcement of the RDA
• After last inspection day in the advertisement notice of the L&D Account but only if no objections were submitted or all objections resolved [Ss 35(4) & (12)]
• Beneficiaries obtain vested rights in inheritance awards
• Executor required to finalize all payments and transfers. To be done - two months after the advertisement notice’s expired inspection period
• Executor must ensure that immovable property is registered and submit s 42(1) certificate, as proof
• Master obliged to ensure the executor's required submission of proof of compliance
• Executors of Deceased Estates
• Estate Administrators
• Fiduciary Practitioners
• Attorneys and Candidate Attorneys
• Conveyancers
• Accountants and Tax Practitioners
• Chartered Accountants (CA(SA))
• Professional Accountants (SA)
• Trust Officers and Estate Clerks
• Financial Planners and Wealth Advisors
• Professionals involved in estate planning and estate administration
• Anyone seeking a practical understanding of Redistribution Agreements in deceased estates
