EDUCATIONAL SERIES

The Liquidation and Distribution Account

A key document in the estate administration process
Infosheet 12 of 28

At the heart of every formally administered deceased estate is a single document: the Liquidation and Distribution Account. It is the financial record of the estate — a complete picture of what the deceased owned, what they owed, what it cost to administer the estate, and how what remains will be distributed.

The L&D Account must be prepared by the executor, reviewed and approved by the Master of the High Court, and then advertised for public inspection. Only after that process is complete — and only if no valid objections are lodged — can distribution begin.

1 What Is the L&D Account?

The Liquidation & Distribution Account is the financial blueprint of the estate. It shows everything the deceased owned, owed, and how the estate will be distributed. This applies to estates over the value of R250 000.

It is important to appoint an attorney or suitably qualified person to draft this Account, as expertise is required.

2 What the L&D Account Includes
  • Full list of assets and whether they are sold or transferred to heirs
  • Valuations of property, vehicles, and investments
  • List of debts and liabilities
  • Executor’s fees
  • Proposed distribution to beneficiaries
  • Supporting schedules and notes
3 Why the L&D Account Is Important
  • Ensures transparency
  • Ensures liquidity to settle all debts, liabilities, and administration costs
  • Allows beneficiaries to understand the estate
  • Enables creditors to verify claims
  • Required by the Master before distribution
4 The Inspection Period

Once approved by the Master:

  • Advertised in terms of Section 35 of the Administration of Estates Act
  • Published in a local newspaper, the Government Gazette, and a Magistrates’ Court
  • Lies open for 21 days
  • Beneficiaries and creditors may lodge objections
5 After the Inspection Period

If no objections are received:

  • The executor may proceed with distribution
  • Property transfers and payments can begin
  • The estate moves toward finalisation

A Note From Our Practice

Losing someone you love is hard enough. The legal process of winding up their estate should not be a source of additional confusion or anxiety. But for most families, it is.

Estate administration in South Africa is a structured legal process governed by the Administration of Estates Act and a range of other legislation. It involves the Master of the High Court, SARS, financial institutions, the Deeds Office, and more. It takes time. It requires documents. And it can feel, at every turn, like a system that expects you to already know how it works.
We created this educational series because we believe informed families make better decisions and because the questions we are asked most often are the same ones that could be answered before a client ever walks through our door.

The CDT Educational Series consists of 28 infosheets covering the full spectrum of deceased estate administration, from the first 72 hours after a death to the final distribution of assets. Each infosheet is written in plain language, without jargon, and is designed to give you a clear picture of what the process involves and why each step exists.

Important: These infosheets are educational resources. They provide general information about the estate administration process in South Africa and are not intended as legal advice. Every estate has its own facts, complexities, and circumstances. Nothing in this series should be relied upon as a substitute for professional legal guidance specific to your matter.

Our intention is simple: to help you understand the landscape, ask the right questions, and feel confident when you come to us for help. Because when you are ready, we are here.

Cari du Toit & Aqeela Peters

Directors
Cari du Toit Incorporated Attorneys & Conveyancers