PAID-UP: The bank says the bond is fully settled and they are awaiting documents from the master of court to complete the process…

By Thuli Zungu

When Boni Sekhu’s mother passed away 13 years ago, she says she notified ABSA bank about her death and asked them to cancel their home insurance policy. Sekhu 50, says her mother had overpaid her bond by R40 000 at the time of her death.

The bank then adviced her to open a late estate account. “Because I did not have the required documents, like a letter of authority, I waited until I received it and then submitted those documents to Absa,” says Sekhu.

She was shocked when the bank sent her an  email informing her that the house was in arrears. “I advised them that the house is paid off and I am waiting for them to give us the title deed.  Absa responded by saying that they have been debiting the home insurance premiums from the bond account causing it to be in arrears.”

She advised Absa again to cancel the insurance policy and refund all the premiums they had debited from the bond  account because she had notified them of her mother’s passing and to cancel the policy.

“Absa refunded part of the amount they had deducted from the bond account. I opened the late estate account again at The Greenstone branch and have constantly been in contact with Absa  inquiring about our title deed but each time I  get different responses.

She was  told that the Master’s Office was not responding to their emails to verify the letter of executorship. She was advised to go to the Masters Office to inquire.

Absa’s spokesperson says while they are limited in the information they can disclose relating to particular customer matters due to banker-client confidentiality, they can confirm that this bond account is fully settled and closed. “However, our National Deceased Estates department have not received the necessary documents to process the estate transfer claim in question.

“We understand the delay relating to the letter of executorship to be an issue of verification, which is performed by the Office of the Master of the High Court.

“We have approached the Master’s Office to obtain the necessary verification and await feedback in this regard.

“The delay is regrettable and we will attempt further avenues to validate the document, however, we recommend that the executor appointed to wind up the estate engages the Master’s Office directly for a response,” says the spokesperson.

In general, each estate is unique and has certain dependencies which could impact the time it takes to finalise the estate. Families are encouraged to remain close to the executor of an estate for guidance and that the executor appointed is sought from an attorney’s firm, trust company or auditor.

It is also important that while still alive, clients ensure a valid will and sufficient estate planning is in place in the event of death to cover all associated costs of an estate, inclusive of executor fees.

The spokesperson says as soon as an estate is reported and a verifiable letter of authority or letter of executorship is issued, the executor will need to reach out to all service providers and financial institutions to obtain a certificate of balance of accounts and statements. This is a pre-requisite to enable the executor to initiate other processes necessary for winding up the estate.

‘’We have approached the Master’s Office to obtain the necessary verification and await feedback in this regard. The delay is regrettable and we will attempt further avenues to validate the document.

However, we recommend that the executor appointed to wind up the estate engages the Master’s Office directly for a response.

In general, each estate is unique and has certain dependencies which could impact the time it takes to finalise the estate.

We encourage families to remain close to the executor of an estate for guidance and that the executor appointed is sought from an attorney’s firm, trust company or auditor.

CONSUMERS WARNED TO SPEND WISELY OVER FESTIVE SEASON DESPITE UNCHANGED REPO RATE

Low: the prospect of lower rates next year should not generate a strong reaction from borrowers

By Thuli Zungu

Following the South African Reserve Bank’s decision this week to leave its benchmark repo rate unchanged, First National Bank urged its customers to spend wisely during the festive season.

The bank said they will maintain its prime rate at existing levels and will review this position after the next SARB MPC meeting in January 2024.

FNB CEO, Jacques Celliers, says : “While many factors indicated the possibility of a rate hike , the Reserve Bank’s decision to hold their key lend-ing rate provides some relief after a challenging year. However, the bank’s decision aligns with traditionally high spending during Black Friday and the holiday season.

“I urge consumers to keep an eye on their fi- nancial needs in January next year as we go into this higher spending period. With inflation now sta- bilising and even declining around the world, con-sumers and businesses should be aware that salary adjustments will follow a similar pattern.

The prospect of lower rates in 2024 should not generate a strong reaction from borrowers.”

FNB Chief Economist, Mamello Matikinca- Ngwenya says :  “This week’s decision comes as expected. Global activity has weakened following the post-pandemic cyclical recovery and, while inflation remains sticky, it is slowing. In line with this, central banks in major economies have also paused interest rate hiking cycles.

Locally, lower fuel prices should support slower headline inflation before year-end, pushing real interest rates higher. More importantly, core inflation remains weak despite higher import and electricity costs, highlighting constrained consumer demand which has extended to property and vehicles.

While funding risks remain elevated, the more positive market reaction to the Medium-Term Budget Policy Statement (MTBPS) and a subse-quently improved rand-dollar exchange rate wouldhave provided further cause for the MPC to stay put.

‘’That said, we are not surprised that, like the Fed, the MPC maintained a hawkish tone. Such a tone may be key in containing inflation expecta-tions and financial conditions while the impact of an aggressive hiking cycle takes the intended toll on economic activity.”

Celliers thanked FNB customers for their sup- port during the past year and extended their best wishes to all during the holiday season.