Liquidation Account intro and assets Flashcards
While reading the question establish the following:
- DOD
- Testate/intestate
- Who is the executor/agent? registered for VAT or not?
- Marital status of the deceased
- Identify the legacies and the legatees
- identify the residue and the residuary heirs
An entire L and D accounts consists of the following…
- Heading
- Money Column
- Liquidation Account (Assets and Liabilities at date of death)
- Recapitulation Account (To determine if estate is liquid or illiquid)
- Distribution Account (Award inheritance to legatees/residuary heirs)
- Income and Expenditure Account (After death)
- Fiduciary Assets Account (If deceased enjoyed a limited interest as fiduciary heir)
- Estate Duty Addendum (forms part of liabilities in liquidation account)
- Certificate by the Executor
- Heading = ICOP
ICOP = The First and Final Liquidation and Distribution Account in joint estate of the late [insert deceased’s name] (Identity number_______) who died on [insert DOD] and who was married in community of property to [insert spouses name and maiden name] (Identity number ________). Masters reference number xxxx/year(location)
- Heading =OCOP w/out and with the accrual system/ customary law
The First and Final Liquidation and Distribution Account in the estate of the late [insert deceased’s name] (Identity number_______) who died on [insert DOD] and who was married out of community of property [without/with accrual] or [according to customary law]. Masters reference number xxxx/year(location)
- Heading =unmarried
The First and Final Liquidation and Distribution Account in the estate of the late [insert deceased’s name] (Identity number_______) who died on [insert DOD] and was unmarried at the time of his death. Masters reference number xxxx/year(location)
- Money column
Item; Liabilities/debits + Assets/credits
- Liquidation Account
Assets (at DOD) - Liabilities (at DOD) = Gross Value of Assets
Assets = Immovable property; movable property; claims in favour of the estate (cash assets of deceased)
LESS(-)
Liabilities = administration expenses; claims against the state (amounts owing to executor); estate duty payable by estate
Immovable property
Farm; agricultural holding/plot; Erf/stand in a suburb; apartment/sectional title
Farm
The farm [name], [Suburb]
Registration Division _____, name of
Province,
Measuring: #### hectares
Held under Deed of Title T###/##
Agricultural/plot
Plot ##,suburb, city
Registration Division _____, name of
Province
Measuring: #### hectares
Held under Deed of Title T###/##
Erf/stand in suburb
Erf ### suburb, city
Registration Division ____,
name of Province
Measuring: ####sq metres
Held under Deed of Title: T###/##
Apartment/sectional title
A unit consisting of -
(a) Section No # as shown and more fully described on Sectional Plan No SS ###/#### in the scheme known as [Town] in respect of the land and building situated at ERF ###, suburb, city metropolitan municipality, of which section the floor area, according to the said sectional plan, is ### swore metres in extent, and
(b) An undivided share in the common property in the scheme apportioned to the said section in accordance with the participation quota as endorsed on the said sectional plan
held by deed of transfer no ST ###/##
As per sworn valuation
Vehicle
year, make, model, registration number __ ## __ province
Shares
of shares in [companies name]
Movable property
Vehicle; furniture/household contents; shares in public and private companies; members interest in CC
Claims in favour of the estate
Policies and cash assets (bank accounts)
Record either sold value or value at date of death
A3(i); A3(ii); B1; B2; C1
