What documents are needed to change bank details for a deceased estate?

Direct answer

For a deceased estate, SARS says that the person appointed by the Master of the High Court with a Letter of Authority or Letter of Executorship is the person who can request a banking-details change. A registered tax practitioner or agent can act only under the stated delegation rules, with a power of attorney from the executor and the required supporting documents.

First make sure SARS has coded the taxpayer as a deceased estate. SARS's banking-details guide says the status change must be confirmed before an executor or administrator attempts to change the banking details. This is a fraud-sensitive process. Do not ask SARS to pay into a beneficiary's or surviving spouse's account simply because that person is available to provide information.

What this means in practice

Estate bank details are not ordinary personal banking details. The payment destination must be compatible with the estate's authority and the amount of money involved. SARS explains that a deceased estate with money in hand exceeding R1,000 is required to open an account in the name of the estate. Its guide also explains special rules for section 18(3) estates and for the use of an administrator's account in the limited circumstances it identifies.

The starting point is the Master-issued appointment document. Check whether the estate has a Letter of Executorship or a Letter of Authority, who is named, whether multiple executors have been appointed and whether one executor has been nominated to represent the taxpayer. If an attorney, accountant or tax practitioner is acting, retain the executor's power of attorney and identify the person who will submit the request.

SARS's guidance lists eFiling RAV01, certain electronic routes and in-person options as available ways to request a banking-details change. It also states that it will not accept such a request by telephone or post. Follow the current case instructions and protect the documents from phishing and unauthorised access.

Step-by-step

1. Confirm the taxpayer has been coded as a deceased estate. SARS advises executors and administrators to wait for the letter confirming the status change before attempting to change banking details.

1. Confirm authority. Keep the Letter of Executorship or Letter of Authority, the executor's identity document and current contact details together. Where there are co-executors, record any nomination and authority to act.

1. Identify the appropriate estate bank account. Check whether the estate has money in hand above the threshold stated in SARS's guide and whether its account name and bank evidence are consistent with the estate.

1. Collect supporting information. This usually includes the appointment document, identity evidence, current bank statement and any power of attorney for an authorised practitioner or agent. Follow any case-specific SARS request.

1. Use the current official SARS channel. SARS's guide refers to RAV01 within eFiling for registered-details maintenance and identifies limited electronic and in-person alternatives. Do not send sensitive documents to an address taken from an unsolicited message.

1. Submit the information as requested and preserve the case number, upload confirmation and a complete copy of the evidence pack. If SARS asks for a self-image, identification or case note under the current process, follow the exact instructions rather than substituting a different document.

1. Verify the result in the authorised SARS profile or through the formal case response. A submitted request is not confirmation that the account was accepted or that a refund has been released.

Documents and records to keep

• Letter of Executorship or Letter of Authority.
• Executor identification and contact details.
• Estate bank statement and account evidence.
• SARS coding confirmation that the case is a deceased estate.
• Power of attorney, tax-practitioner details and agent identification, if relevant.
• RAV01, supporting-document list, case reference and SARS response.

Important limits and exceptions

SARS says the deceased-estate banking change cannot be made before the case is coded as a deceased estate. It also says that where an estate has money in hand above the amount specified in its guide, an estate account is required. The rules for a small section 18(3) estate can differ, so read the current guidance and the Letter of Authority before choosing the account.

A beneficiary or surviving spouse is not automatically entitled to direct the bank change. SARS specifically says that, if no Letter of Authority is available, bank details cannot be changed to a surviving spouse or beneficiary. The person should obtain the required authority from the Master rather than trying to bypass the estate process.

When to get tailored advice

Get tailored advice for multiple executors, a disputed appointment, a foreign bank, a refund connected to an assessment or audit, an estate with substantial cash, an insolvent estate or an unclear section 18(3) position. Advice is also appropriate if the request concerns a third-party account or a practitioner acting on behalf of the executor.

Related TaxProof guides

• How do I register a deceased estate with SARS?
• How do I add a second tax number for a deceased estate on eFiling?
• Which SARS return applies to income after a taxpayer dies?

Sources

• SARS, Change of Banking Details External Guide
• SARS, Estates