Aug 06 Que

AUGUST 2006

LEGAL PRACTITIONERS EXAMINATION ADMINISTRATION OF ESTATES TIME 90 MINUTES

MARKS 100

Candidates should use their own facts where necessary QUESTION 1

(70)

Peter Thomas who died on 15th July 2006, left a will in which he appointed his children, James, George and Mary as well as his step children, Simon and Elizabeth Children of his wife from a previous marriage, as heirs in equal shares. The executor nominated in the will declined the appointment and the family wish you to be the executor. His estate consisted of cash and cash investments totaling $900 000 as well as a fiduciary interest in fixed property valued at $600 000 which had to be sold on his death and the proceeds divided between his children James, George and Mary. He left the following family His daughter Mary married I.C.O.P. Grand daughter Penny married O.C.P., daughter of predeceased son James Grand son William son of predeceased son George Grand son John, minor son of predeceased son George Step daughter Elizabeth Zelda minor daughter of step son Simon. (a) Draft the letter to the Master enclosing the necessary documents for the appointment of an executor [17] (b) Calculate the Master’s fee and executor’s remuneration in both the personal asset and fiduciary accounts [6] (c) Assuming that the liabilities amounted to $100 000 draw up the Distribution account of the deceased’s personal assets. [35] (d) Draw up the Fiduciary asset account. [12] QUESTION 2 (20) Joe Peters died intestate leaving the following assets. Farm property valued at $900 000 Movables valued at $500 000 Investments of $300 000 Joe’s left the following family: His wife Shirley married Out of Community of Property His son Peter His daughter Jane

Minor grand children Andrew and Charles, children of predeceased daughter As it was not practical to subdivide the assets, the survivor wishes to take over the assets in terms of section 38. Draw up the affidavit by Shirley for the taking over. [20] QUESTION 3 [10] List the facts that must be mentioned in the heading to an account of a deceased, married O.C.O.P. where the estate is massed. [10]