Drafting the Liquidation and Distribution Account / breakdown of assets, administration costs and liabilities Self-Study Course

This session helps learners understand the required structure and practical preparation of the Liquidation and Distribution Account, including the Master’s inspection process and the implications for heirs, creditors and surviving spouses.

Learning outcomes

draft the required the Liquidation and Distribution Account;

understand when the account must be lodged;

identify the information and documentation required for drafting the account;

understand the required structure of the account;

distinguish between assets, liabilities, administration costs and distributions;

understand the inspection process;

identify common drafting and calculation errors.

Key topics

• The Liquidation and Distribution Account
• Section 35 of the Administration of Estates Act 66 of 1965
• Six-month lodgement requirement after Letters of Executorship
• Schedule 4 and Regulation 5 requirements
• Assets to be reflected in the account
• Liabilities and creditor claims
• Administration costs
• Executor’s fees and estate costs expenses
• Cash shortfalls and cash contributions
• Outstanding bonds and immovable property
• Surviving spouse and co-owner considerations
• the account lying open for inspection
• Magistrate’s Court inspection process
• Master’s queries;
• and objections
• Preparing for distribution after approval