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What If the Master Requests Security from the Executor?

Quick summary
Under section 23 of the Administration of Estates Act, the Master of the High Court requires the executor to lodge security for the proper performance of executor duties — unless the will exempts them, or they fall within a statutory exemption category. Security takes the form of an executor’s bond issued by an insurer, typically costing 1–2% of estate value.
This article covers when security is required, how the bond works, how to apply for exemption, and what happens if the Master insists despite an exemption clause.

Why security exists

The executor manages all the estate’s assets — typically more money than they will ever handle in their personal capacity. If the executor steals, misuses, or carelessly loses estate funds, the heirs are left short.

Section 23 of the Administration of Estates Act protects heirs by requiring the executor to lodge security with the Master. If the executor breaches duty, the heirs can call on the security up to its face value.

In practice, claims against executor’s bonds are rare — but the security regime exists to keep them rare.

When is security required?

Security is required unless one of the following applies:

  1. The will exempts the executor. Most South African wills include an exemption clause: “I direct that my executor shall not be required to provide security to the Master.” If the will exempts, security is not required.

  2. The executor falls within the statutory exemption. Under section 23(2), the following are automatically exempted:
    – The parent, child or surviving spouse of the deceased
    – The Master, the Crown, a person already exempted by another section
    – A bank or trust company (in the trust capacity)

  3. The Master, in writing, exempts the executor. The Master has discretion under section 23(2)(c) to exempt any executor on application. Grounds may include small estate value, sole heir is executor, etc.

If none of these apply, the executor must lodge security.

What is an executor’s bond?

The bond is an insurance product. The executor (or the estate) pays a premium to an insurer. In exchange, the insurer issues a bond in favour of the Master for a specified amount.

If the executor breaches duty and the heirs suffer a loss, the heirs can sue the executor — and if they win, can call on the bond up to its face value.

The bond runs for the duration of the executor’s administration, typically 12 to 24 months. It can be extended if administration takes longer.

Who issues executor’s bonds?

Several South African insurers specialise in executor and fiduciary bonds:

  • Lombards Insurance
  • Hollard
  • Bryte
  • Centriq
  • Some private bonding houses

The major banks do not issue executor’s bonds (they issue conveyancer’s bonds, which are different).

What does it cost?

The premium is calculated on the estate value — not the executor’s net worth. Typical 2026 pricing:

Estate value Bond face value Annual premium
R250,000 R250,000 R2,500
R500,000 R500,000 R5,000
R1,000,000 R1,000,000 R10,000
R5,000,000 R5,000,000 R50,000
R10,000,000 R10,000,000 R100,000
R20,000,000 R20,000,000 R200,000

Premium is roughly 1% of estate value per year, with discounts for larger amounts.

For a typical 18-month administration, the bond cost is therefore 1.5% of the estate. For a R2 million estate, that’s R30,000 over 18 months — a significant cost.

How to apply for the bond

The application process:

  1. Contact an insurer or broker — most insurance brokers can place an executor’s bond
  2. Complete the application form — disclose your personal details, the estate value, the deceased’s particulars, and any history of trust litigation
  3. Provide documents — Letters of Executorship draft, certified ID, proof of address
  4. Pay the premium — usually upfront for the first 12 months
  5. Receive the bond — original document, usually within 1–2 weeks
  6. Lodge with the Master — alongside the J190 and other reporting documents

The Master will not issue Letters of Executorship until the bond is lodged.

How to apply for exemption from the Master

If the will does not exempt and you do not fall within the statutory categories, you can apply to the Master for discretionary exemption under section 23(2)(c).

Grounds the Master will consider:

  • Small estate value (often under R1 million)
  • Executor is sole heir
  • Executor is the surviving spouse of the deceased’s child (not automatic exemption but close)
  • Executor is a senior attorney, accountant or fiduciary practitioner with substantial professional indemnity cover
  • Executor has lodged sufficient personal assets as security in lieu

The application is by letter to the Master, attaching:

  • Reasons for the exemption
  • Supporting documents (proof of asset value, professional credentials, etc.)
  • Confirmation from heirs (if available) that they consent to no bond

The Master may grant, refuse or grant partial exemption (lower face value).

Timing: 4–8 weeks from application.

Likelihood: moderate. The Master grants exemption in clear cases but declines where any doubt exists.

What if the will exempts but the Master insists?

Rare, but it happens. Common reasons:

  • The will is being contested
  • The Master has concerns about the executor’s competence
  • The estate is large or complex
  • A creditor or heir has formally objected

In these cases, the Master may override the will’s exemption under section 23(3). The executor has two options:

  1. Lodge security as required, and pursue an application to court for declaration that the exemption applies
  2. Decline the executorship and let the Master appoint another executor

Override of a will exemption is unusual but the Master has the power and uses it.

Can the bond be reduced as the estate is administered?

Yes. As assets are paid to creditors and distributed, the remaining estate shrinks. The executor can apply to the Master to reduce the bond correspondingly. The insurer typically returns a portion of premium for the reduced exposure.

Practical recommendation: review the bond at the 6-month and 12-month marks and reduce if assets are significantly down.

Common pitfalls

Buying the wrong type of bond

There are several similar-sounding bonds:

  • Executor’s bond — for estate executors
  • Trustee’s bond — for trustees of a trust
  • Curator’s bond — for curators
  • Conveyancer’s bond — for property transfers
  • Tutor’s bond — for tutors of minors

These are not interchangeable. Confirm with the insurer.

Underestimating the estate value

The Master requires security for the gross estate value at date of death — not the net value after debts. Underestimating leads to the Master rejecting the bond as insufficient.

Letting the bond lapse

Bonds expire (typically annual). If the estate runs beyond 12 months, renew before expiry. A lapsed bond means the executor has no security in place — the Master may suspend the file.

Not budgeting for the premium

Bond premiums are estate expenses but they’re paid upfront, often before the Estate Late account is open. Most executors fund the initial premium from personal resources and reimburse from the estate later.

Frequently asked questions

Is the bond refundable if the estate is wound up early?

Partial refund. Insurers refund pro rata for the unexpired portion of the cover. Refund is usually 50–70% of the unused portion.

Can the executor’s fee cover the bond premium?

The bond premium is an estate expense, separate from the executor’s fee. Both are paid from the estate (premium from the Estate Late account; fee with the Master’s approval).

What if I cannot afford the bond?

If the bond premium is unaffordable and exemption is declined, you can renounce the executorship. The Master will appoint someone else. Better to renounce than to delay the estate indefinitely.

Does the bond cover the executor’s mistakes generally?

Only mistakes that cause loss to the heirs. Routine administrative errors that don’t cost the estate money are not covered.

Can the executor get a personal guarantor instead of a bond?

In rare cases, yes — a person of sufficient means can sign a personal guarantee as security. Most Masters prefer a commercial bond because the recovery process is simpler.

What if the executor is a foreign person?

The Master typically requires a higher bond face value, or a South African co-executor, for non-resident executors. Some insurers do not cover foreign executors at all.

How MasterAssistant can help

We assist with the bond process and exemption applications:

  • Application for exemption to the Master — R950 fixed (drafting + lodgement)
  • Bond placement coordination — included in our reporting pack fee
  • Bond reduction application mid-administration — R750

We do not issue bonds ourselves (we are an attorney, not an insurer) but we work with the leading executor-bond insurers and can have a quote in your hands within one working day.

Master requested security? Call 087 001 0733 or start online. Free 10-minute call to assess exemption prospects.

Last updated: 17 May 2026. Security requirements are governed by section 23 of the Administration of Estates Act, 1965. Bond premiums vary by insurer and estate complexity. This article is general information only — not legal or insurance advice.