In a landmark decision, eThekwini Municipality has approved the write-off of debts for properties from deceased and insolvent estates valued up to R1 million, provided the debts are over 24 months old. This relief is aimed at helping beneficiaries of these estates who are struggling financially, and it aligns with the Municipal Financial Management Act and the eThekwini Municipality Credit Control and Debt Collection Policy.
As of now, debts owed by deceased estates without appointed executors are estimated at over R900 million. The relief package is limited to residential properties, with the following conditions:
The estate must be for residential households only, not businesses.
The debt involved must be older than 24 months.
A surviving beneficiary with legal title must represent the estate to prevent further debt accrual.
For minors or indigent beneficiaries, the Council’s Indigent Policy will be applied, ensuring additional support where needed.
Mayor Cyril Xaba emphasized that this decision would provide much-needed relief to struggling families, while also encouraging beneficiaries to settle outstanding debts legally. The move is expected to enhance revenue collection for the City by reducing illegal connections and the risk of criminal prosecution for occupants.
The Mayor encourages all beneficiaries or next of kin to contact the Municipality and make the necessary arrangements.
Source: EThekwini Municipality. (2024). EThekwini Municipality Writes Off Debts of Deceased Estates. Available at: https://www.durban.gov.za/press-statement/EThekwini+Municipality+Writes+Off+Debts+Of+Deceased+Estates.
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