Liquidation of estates: what does this mean?

Liquidation is the preparation of an estate or a company (a legal entity) for distribution. But when should it be settled and what exactly does it mean? 

https://kennis.bierman.nl/blog/vereffening-van-nalatenschappen-wat-houdt-dit-in?utm_content=232636487&utm_medium=social&utm_source=linkedin&hss_channel=lcp-112046

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