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
Embarking on the journey to become a Business Rescue Practitioner (BRP) in South Africa is a pathway filled with challenges, but also immense opportunities to make a significant impact in the corporate landscape. As the country navigates through economic fluctuations and business uncertainties, the role of a BRP has become increasingly vital. This article serves…
Short Answer: Yes, you can get retroactive cover. It’s important to note that various insurers may have distinct criteria or prerequisites concerning retroactive cover and dates. You should canvass this with your broker prior to taking out a PI policy. Retroactive cover is an important aspect of Professional Indemnity (PI) insurance. This type of cover…
While this list is not exhaustive, here are some professions in South Africa that commonly require PI insurance: It is important to note that the requirement for PI insurance may vary based on regulatory bodies, professional associations, contractual obligations, and client demands within each profession. Professionals in these fields should consult with their respective industry…