For almost a decade, Absa Trust, a division of Absa Bank, has run its estate administration using Magic software supplied by Magic SA, a wholly owned subsidiary of JSE Securities Exchange-listed MGX. It is now in the process of implementing the latest version of the software throughout its eight branches around SA.
Estate administration requires strict adherence to a vast assortment of laws and regulations. The paperwork involved in this administration is considerable, and a system managed manually would scarcely cope with the volumes dealt with. In 1993 Absa Trust implemented Magic Version 4 as a virtual e-business solution to develop an executor system. This was done to manage administration of the deceased estate. Over the years the division has upgraded regularly to keep up with improved technological developments the software has to offer and ensure the most efficient system remains in place.
"The policies and procedures for estate administration and execution require large volumes of documentation, even for the smallest estates," says Bennie van der Westhuizen, head of Absa Estates division at Absa Trust.
"Death notices have to be sent out, inventories drawn up, various forms of receipts sent out itemising documents sent, received or outstanding as well as lists of assets and their values. Using Magic we are able to process this information in minimal time - from the moment the estate information comes into the office, inputting the information into the system takes approximately 90 minutes."
Using this information, the system is able to process relevant letters from a selection of about 1 000 standard templates. There are three categories of estate. Letters are sent to the masters of the high court, beneficiaries, lawyers, legal departments, the South African Revenue Service, insurance companies, banks and other relevant parties.
"The letters have to be further divided into English or Afrikaans, and can be customised to accommodate additional details pertinent to specific requirements," says Van der Westhuizen. "A letter to an insurance company regarding assets will automatically include the policy number of the specific estate, together with the address of the relevant branch."
The software also ensures an efficient follow-up system. Once the user specifies the required follow up period, for example 14, 21 or 30 days, the system observes the time period and requires confirmation of follow up by the stipulated date. If a reply is not received within that date, the system automatically lists all the letters that require following up. These letters can then be printed and re-sent as reminders.
Once the complete lists of assets, liabilities and valuations have been received from the various companies involved, the system produces a complete liquidation and distribution account, which includes the estate duty account. At any time a detailed breakdown of cash flow can be accessed, listing all income and expenses.
"The implementation of Magic software in the designing of a high quality executor system has over the years provided Absa Trust with a fully comprehensive management system that keeps us a step ahead of our competitors," says Van der Westhuizen.
Kevin Mizen, professional services manager at Magic SA, says the benefits the software offers to industry are considerable. "In a decentralised environment, Magic is the perfect tool because of its rapid deployment capabilities," he says.
The company is currently rolling out the latest version of the software, Magic Version 9, which complements the simultaneous upgrade of the operating system to Oracle 8.
"Each of our branches - Bellville, Port Elizabeth, Bloemfontein, Kempton Park, Durban and two in Pretoria - will be undergoing the upgrade individually, because each branch runs on its own local area network (LAN) rather than on a national system. The upgrade should be complete by June," he says. Van der Westhuizen says that during the next eight months, Absa Trust will also be using Magic software to implement an electronic payment system for its business, which will enhance payment security and increase efficiency.
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