After 3 years of trying to wrap up a very simple estate, Nedbank are requesting I pay in a large sum towards the death tax which they say is owing to SARS. On top of this we have been penalised as Nedbank have taken their time to wrap this up. 50 / 50 estate between myself and my brother. No debt, no companies, straight forward.

Question

After 3 years of trying to wrap up a very simple estate, Nedbank are requesting I pay in a large sum towards the death tax which they say is owing to SARS.  On top of this we have been penalised as Nedbank have taken their time to wrap this up.  50 / 50 estate between myself and my brother. No debt, no companies, straight forward.

The estate still owes us a large sum from the bank accounts (all policies have been paid out) They are now withholding this money as they say we owe SARS.  
Does Nedbank have a right to do this?  Surely we should be paid out from the estate first and then in our own personal capacity pay out to SARS?  The money due to SARS is not owed from my mother who passed, but purely death tax.

I hope this all makes sense.  Thank you

GPT 3.5 · Answer

I'm not a legal expert, but I can try to provide some general information. In South Africa, the South African Revenue Service (SARS) is responsible for the collection of taxes, including estate taxes. When someone passes away, it is generally the responsibility of the executor of the estate to ensure that any outstanding taxes are paid before distributing the remaining assets to the beneficiaries.

If Nedbank, as the executor, believes that there are outstanding estate taxes owed to SARS, they may be within their rights to withhold funds from the estate in order to settle those tax obligations. It's possible that they are withholding the money to ensure that there are sufficient funds to pay any outstanding taxes before distributing the remaining amount to the beneficiaries.

However, it's important to review the terms of the estate administration process and any applicable laws to determine the exact rights and obligations of the executor. In some cases, it may be appropriate for the estate to pay the outstanding taxes before distributing the remaining funds to the beneficiaries. You may want to seek legal advice to better understand your rights and options in this situation.

Additionally, if you believe that Nedbank has been negligent in administering the estate and has caused you to be penalized or delayed in receiving your rightful share, you may also want to consider seeking legal advice to understand if there are any remedies available to you.