The timing of a deceased estate’s final Liquidation and Distribution account has important tax implications for executors and beneficiaries, particularly during the statutory advertisement period. Guidance from SARS clarifies when deceased estate income tax liability ends and when beneficiaries take over.
The question of when a deceased estate stops being liable for income tax remains a recurring point of discussion among estate practitioners, according to the Fiduciary Institute of Southern Africa (FISA).
Guidance published by the South African Revenue Service (SARS) clarifies that a deceased estate remains liable for tax on income earned during the statutory advertisement period, up to the approval of the final Liquidation and Distribution (L&D) account.
When does deceased estate income tax liability end?
According to Question 33 of SARS’s Frequently Asked Questions on Deceased Estates (Issue 4), income earned during the advertisement period must be declared in the deceased estate’s final income tax return, even if it does not appear in the income and expenditure account of the L&D account.
For this purpose, approval generally refers to the final day of the three-week inspection period prescribed by Section 35(5) of the Administration of Estates Act 66 of 1965, provided no objections are lodged or any objections are dismissed by the Master.
If an objection is upheld and the L&D account must be amended, or the Master requires amendments for another reason, a further advertisement period may be necessary. The relevant approval date then becomes the final day of the new inspection period.
What happens to income earned after approval?
Question 34 of SARS’s guidance states that income earned after approval of the final L&D account accrues to the beneficiaries, where applicable.
The executor must inform beneficiaries that they are responsible for declaring this income in their individual tax returns.
Why the statutory advertisement period matters
The three-week inspection period is an important stage in the administration of a deceased estate.
Under Section 35(5), the executor must advertise that the L&D account is available for inspection, allowing interested parties the opportunity to examine the account and lodge objections.
The publication and inspection process therefore has implications beyond statutory compliance. It also helps determine the point at which responsibility for declaring income shifts from the deceased estate to its beneficiaries.
Executors and fiduciary practitioners should ensure that the relevant publication and inspection dates are accurately recorded as part of the estate administration process.
The full SARS guidance is available in its Frequently Asked Questions on Deceased Estates (Issue 4).
Source: Fiduciary Institute of Southern Africa (FISA). Based on an article summarised by FISA CEO Jan du Plessis, originally published on 4 June 2026. Read the original FISA article.
Section 35(5) deceased estate notices
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