Sophie Maphosa N.O. and Others v The Assistant Master, High Court, Bulawayo N.O. and Another

The applicants were executors of various deceased estates (Estate of Tjenjelani Ndlovu who died on 4 January 2007, Estate of Resmond Nkala who died on 4 July 2003, and estates of Major Mbelesi, Josiah Bruce Gwizi and Petty Gwizi). All deceased persons died before February 2009 when Zimbabwe dollarized its economy. The applicants submitted Executor's Inventories and Liquidation and Distribution Accounts valued in Zimbabwe dollars based on the date of death valuations. The 1st and 2nd respondents (Assistant Master and Master of the High Court) rejected these accounts and required the applicants to submit accounts valued in United States Dollars, arguing that the Zimbabwe dollar had become worthless and moribund after dollarization in February 2009. The 1st respondent rejected the Liquidation and Distribution Accounts in the Estate of Tjenjelani Ndlovu and the Estate of Resmond Nkala on this basis.

• Whether the values of assets in deceased estates should be determined as at the date of death or at the date of submission of the Liquidation and Distribution Account
• Whether Executor's Inventories and Liquidation and Distribution Accounts for estates of persons who died before February 2009 could be denominated in Zimbabwe dollars despite subsequent dollarization
• Whether it was lawful for the Master to reject estate accounts valued in Zimbabwe dollars for estates where death occurred before dollarization
• Whether Estate Duty and Master's fees should be based on the value of the estate at date of death or at date of account submission

The court granted a declaratory order that: (1) The respondents' requirement that applicants file Executors' Inventories and Liquidation and Distribution Accounts in currencies other than Zimbabwe dollars for the specified estates was wrongful and unlawful as it contravened section 38 of the Administration of Estates Act and section 8(1)(a) of the Estate Duty Act; (2) The 1st respondent's rejection of the Liquidation and Distribution Accounts in the Estate of Tjenjelani Ndlovu and the Estate of Resmond Nkala was wrongful and unlawful; (3) The respondents are obliged to accept Liquidation and Distribution Accounts and Executor's Inventories denominated in Zimbabwe dollar currency for any deceased estate where the deceased died before 1 February 2009; (4) The respondents are barred from levying Estate Duty or Assistant Master's fees based on any value other than the value of the estate as at the date of death; (5) The respondents shall pay the costs of the application jointly and severally.

The value of a deceased estate for purposes of estate administration, including the preparation of Executor's Inventories and Liquidation and Distribution Accounts, and the calculation of Estate Duty and Master's fees, must be determined as at the date of death of the deceased, in accordance with sections 38 of the Administration of Estates Act [Chapter 6:01] and sections 4, 6 and 8 of the Estate Duty Act [Chapter 23:03]. Where a person died before the dollarization of the Zimbabwe economy on 1 February 2009, the estate must be valued in Zimbabwe dollars as at the date of death, and subsequent currency changes do not affect this valuation. The Master cannot reject estate accounts properly denominated in Zimbabwe dollars for estates where death occurred before dollarization, nor can Estate Duty or Master's fees be levied based on any value other than the value of the estate as at the date of death.

The court observed that the respondents' submissions regarding the application of multi-currency and dollarization "would have been applicable if the respective deceased estates related to deceased persons who died after the dollarization of the economy in February 2009", implying that a different result might apply to estates where death occurred after dollarization. The court also noted that it was "not clear what law the respondents relied on" in making their submissions, emphasizing that the relevant provisions of the Estate Duty Act had not been amended and remained in force.

This case established an important principle regarding the temporal application of currency changes to estate administration in Zimbabwe. It confirmed that the dollarization of the Zimbabwe economy in February 2009 did not retrospectively affect the administration of estates where death occurred before that date. The judgment reinforced the statutory principle that estate valuation is fixed at the date of death and cannot be altered by subsequent economic or currency changes. This provides certainty in estate administration and prevents the retrospective application of currency reforms. The case also affirms the principle that clear statutory provisions cannot be overridden by administrative policy considerations or concerns about fiscal prejudice to the state.