Fisa calls on banks to focus on bank accounts of clients who have passed away

The Fiduciary Institute of Southern Africa (Fisa) has called on the banks to investigate why it takes them months to provide basic information to executors to administer deceased estates.

In a statement, Fisa said delays in the administration and finalisation of deceased estates have been much in the media in recent months. The Master’s Offices are often blamed for the backlog, but it appears that some of the banks are also the reason for the delays.

Fisa members administer about 50% of the deceased estates reported to the Master’s Offices.

Fisa’s chairperson, Ian Brink, said the organisation was urging the banks to streamline and clarify certain procedures that were essential for executors to draw up a liquidation and distribution account. These procedures were:

• Providing certificates of balance. The executor needs these to draft the liquidation and distribution account in the estate.
• Closing the bank account in a deceased’s name and paying the proceeds into a new deceased estate’s account, to ensure liquidity for urgent expenses and financial needs of the family.
• Providing a tax certificate timeously.

Brink said the banks have different procedures, which they sometimes change without consultation, leading to confusion among bank staff, as well as huge frustration to Fisa members who are trying to fulfil their fiduciary duty to clients.

Angelique Visser, Fisa national councillor and a past Fisa chairperson, said: “I speak from my own experience but know that my fellow practitioners are in the same situation, as I am contacted by many of them on a regular basis.

“There, unfortunately, seems to be a lack of responsibility on the part of most banks to provide an acceptable level of client service to the executors and heirs of their clients who held bank accounts and have passed on, some of whom may have banked with the institution for decades.”

Visser said some practitioners were able to obtain authority from the Master’s Office within two to three weeks but have to battle for three to four months for a response from some of the banks.

“I have personally approached the senior management of several banks for assistance but have sadly not seen any improvement; hence the reason why we are bringing it to the attention of the public.”