Liquidation and Distribution Account
The finalisation of the liquidation and distribution account is surely one of the most important steps in the estate administration process. This document must be drawn up by the executor and provides a complete overview of the administration of the estate and shows exactly how each asset and liability will be handled. The liquidation and distribution account must be filed with the Master of the High Court within six months of the issue of the Letter of Executorship. The Master of the High Court must then study it and determine whether it conforms to the terms of the deceased’s will.
Upon approval of the liquidation and distribution account, the Master will authorise the Executor to publish a second set of advertisements giving notice to all parties concerned, that a copy of the liquidation and distribution account will be made available for public inspection at the Master’s Office and also the nearest Magistrate’s Office in the area where the deceased lived for the last 12 months of his/her life. The inspection period usually extends for 21 days from the day the advertisements appeared in the local newspaper and government gazette.
The liquidation and distribution account usually contains the following information:
- Immovable property
- Movable property
- Claims in favour of the estate (Realised)
- Claims in favour of the estate (Not realised)
- Claims against the estate
- Cash position / Liquidity
- Distribution of assets
- Cash flow in estate
- Estate duty addendum
It is evidently clear from the above that when this document is finally drawn up, the heirs will know exactly what the deceased owned, what needs to be paid and exactly who inherits what out of the estate.
This concludes the fourth step in the estate administration process.
Let’s quickly look at the schematic presentation of the estate administration process so that we can see exactly where we currently are in the process:
Step 1: Reporting the Estate
Time scale: 4–8 weeks
Step 2: Letter of Executorship
Time scale: 4–6 weeks
Step 3: Advertisements
Time scale: 4 weeks
Step 4: Liquidation and Distribution
Time scale: 4–8 weeks
Our fiduciary team at BVSA Konsult has decades of experience in estate administration and is professionally equipped to assist you with any matters related to or in connection therewith.
Please contact one of our expert advisors for further information.
The above-mentioned is for information purposes only and is in no way advice. BVSA Consult Pty Ltd. encourages readers to get in touch with an expert financial advisor before making any decisions.
Article written by Reghardt Draper