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Liquidation and Distribution Accounts in Zimbabwe

A Liquidation and Distribution Account is a true and correct reflection of the assets and liabilities of an estate. In terms of the law, the Master of the High Court can direct that an executor or executrix of an estate render periodical accounts of his or her administration and distribution of the estate until the estate is finally liquidated.

The Harare High Court in Zaranyika v The Master of the High Court & Others 2019 (3) ZLR 288 (H) held that a Liquidation and Distribution Account also known as an Estate Account is not only of interest to the beneficiaries of an estate, but also to professional executors and creditors. It is also important to the national fiscus due to the sums payable to the Master of the High Court as Masters Fees and Estate Duty payable upon the estates of deceased persons to the Zimbabwe Revenue Authority (ZIMRA).

In deciding whether to confirm an Estate Account, the Master of the High Court must be guided by the supporting documents concerning the estate, for instance, the inventory (preliminary, executors, additional) as applicable, and the will in testate succession.

A Liquidation and Distribution Account in Zimbabwe should reflect all the money received and all the expenses paid. If a deceased property managed by an executor or executrix has been receiving rentals, an income and expenditure account should be compiled. Such account, should reflect all the money received and how it has been used i.e., payment of municipal rates etc., and if there has been any balance, this is transferred to the estate account.

If the estate is dutiable, the relevant documents to ZIMRA must be attached. The estate file should also contain proof of advertisements placed in the newspapers and the Government Gazette in relation to a call on creditors and debtors to come forward and also the estate account as lying for inspection. These documents, at the end of the day, guide the Master of the High Court on whether to approve a Liquidation and Distribution Account in Zimbabwe. After the confirmation of the Estate Account the executor or executrix will proceed to distribute the estate to the beneficiaries.