Deceased Estates Advanced: Live Demonstration – Step by Step Drafting of the L&D Account Webinar

The final session is a practical live demonstration. It brings together the full series by showing how to draft a Liquidation and Distribution Account from a set of deceased estate facts.

The demonstration follows a step-by-step approach and shows how assets, liabilities, income, expenditure, Estate Duty, heirs, Redistribution Agreements, and awards are reflected in the account.

Key Topics

1. Purpose and Structure of the L&D Account

• Why the L&D Account is required.
• What the account must achieve.
• Relationship between the account, the Master, SARS, creditors, and heirs.
• Core sections of the account.
• Supporting schedules and vouchers.

1. Estate Facts and Source Documents

• Death notice.
• Will or intestacy information.
• Letters of Executorship.
• Inventory.
• Bank statements.
• Valuations.
• Creditor claims.
• SARS information.
• Policy documents.
• Property documents.
• Beneficiary details.

1. Drafting the Liquidation Account

• Listing estate assets.
• Showing date-of-death values.
• Showing realisation values.
• Dealing with immovable property.
• Dealing with movable property.
• Dealing with investments.
• Dealing with life policies.
• Dealing with business interests.
• Dealing with excluded or non-estate assets.

1. Drafting the Liabilities Section

• Funeral expenses.
• Administration expenses.
• Executor’s remuneration.
• Master’s fees.
• Conveyancing costs.
• Bond liabilities.
• SARS liabilities.
• Creditor claims.
• Maintenance claims.
• Contingent or disputed liabilities.

1. Estate Duty and Tax in the Account

• Reflecting Estate Duty.
• Reflecting SARS income tax liabilities.
• Reflecting refunds.
• Dealing with post-death income tax.
• Showing tax as an administration expense where appropriate.

1. Income and Expenditure Account

• Post-death income.
• Interest.
• Rental income.
• Dividends.
• Post death estate expenses.
• Bank charges.
• Property expenses.
• Maintenance of estate assets.
• Net income available for distribution.

1. Distribution Account

• Identifying heirs and beneficiaries.
• Testate distribution.
• Intestate distribution.
• Specific bequests.
• Residue.
• Redistribution agreement.
• Cash awards.
• Property awards.
• Awards to minors.
• Guardian’s Fund payments.
• Equalisation payments.

1. Recapitulation Statement

• Balancing the account.
• Ensuring assets, liabilities, income, and distribution reconcile.
• Checking cash sufficiency.
• Identifying shortfalls.
• Final review before submission.

1. Common Master’s Queries on L&D Accounts

• Missing vouchers.
• Incorrect calculations.
• Missing consent documents.
• Incorrect heir descriptions.
• Unclear awards.
• Missing approved and accepted Redistribution Agreement.
• Incorrect allocation of policies.
• Incorrect Estate Duty reflection.