Bouwer and Another NNO v Master of the High Court, Pretoria

Ms Johanna Helena Josina van Dyk was declared of unsound mind and incapable of managing her affairs, and two co-curators bonis were appointed. In their first annual curator’s account, the curators reflected proceeds from realised assets (an Absa bank account balance, sale of a vehicle, and a collected debt) as income and claimed remuneration of 6% on all income collected in terms of the prescribed tariff. The Master of the High Court rejected this approach, contending that the realised assets remained capital in nature and that curators were not entitled to 6% remuneration on such proceeds, but only on interest earned once invested. The curators sought declaratory relief, which was dismissed by the High Court, leading to an appeal to the Supreme Court of Appeal.

The appeal was upheld with costs, including the costs of two counsel. The High Court’s order was set aside and replaced with declaratory orders confirming that the realised assets were correctly reflected as income and that a curator bonis is entitled to a 6% fee on all funds reflected in the income account as collected, regardless of origin. The Master was ordered to pay the costs.

The case clarifies the accounting treatment of realised capital assets in curator’s accounts and definitively confirms that curators are entitled to 6% remuneration on all income collected during a curatorship, irrespective of the source. It provides authoritative guidance on the interpretation of ss 83 and 84 of the Administration of Estates Act and regulations 7 and 8, and limits the Master’s discretion in disallowing curator remuneration.