This practical workshop focuses on the preparation of a Liquidation and Distribution (L&D) Account from start to finish. Through real-world examples and demonstrations, participants will learn how to correctly record complex estate transactions, apply Estate Duty provisions, and prepare accurate L&D Accounts that withstand scrutiny and facilitate faster estate finalisation.

Content:

Preparing a Liquidation and Distribution Account is one of the most important and technically challenging responsibilities in the administration of a deceased estate. While understanding the legal framework is essential, the practical application of that knowledge within the L&D Account often presents difficulties for executors and estate administrators. This highly practical course demonstrates how common and complex estate transactions should be reflected in the L&D Account, how Estate Duty is calculated and applied, and how adjustments are made when circumstances change during the administration process. Participants will gain the confidence to prepare and review L&D Accounts accurately while avoiding common errors that delay the finalisation of estates.

Key Topics Covered:

• Surviving spouse`s inheritance (section 4q)
• Section 4A
• Policies paid directly to third parties
• Administration costs
• Other exemptions
• Transfer duty
• Any SARS tax is an administration cost in the estate
• A dependent claims that they have not been properly provided doe under the Will
• Sale of property or personal assets
• Creditors
• Someone refuses to turn over an asset belonging to the estate - costs involved
• Joint ownership of assets
• Deceased had other children nobody knew about - how to adjust L & D Account
• Under estimation of Estate Duty
• Personal loan accounts owed to companies / business from deceased borrowed from business then payable back on death
• cash shortfall
• Possible capital gains tax
• Outstanding tax returns and TAX owed
• Divorce orders