Deceased Estates: Drafting the L&D Account and Estate Duty Course

When wounding up a deceased estate, the most important part is the drafting of the Liquidation and Distribution Account (setting out all the assets and liabilities) to be submitted to the Master of the High Court for inspection and approval. This session will provide a practical approach to this important step in the Deceased Estates process.

During this course, Estate Duty will also be discussed, specifically how the L&D Account impacts the Estate Duty calculation.

Topics Discussed:

Drafting of Liquidation and Distribution Account

• Drafting of Liquidation and Distribution Account – Schedule 4 – Regulation 5
• Account to lay open for inspection – Magistrate’s Court
• Administration costs
• Possible cash contribution outstanding bond and the impact of the surviving spouse / co-owner

Estate Duty

• Outstanding returns of deceased up to date of death
  • All outstanding returns must be filed to date of death
  • New Income Tax profile must be created for the Estate
  • After death income / expenses
  • Deceased’s personal SARS profile must be deregistered
• Estate Duty and the calculation thereof
  • Surviving spouse’s inheritance (section 4q)
  • Maintenance payments
  • Policies paid directly to third parties
  • Administration costs
  • Other exemptions
• Transfer duty
• Any SARS tax is an administration cost in the estate