Jun 02 Que

LEGAL PRACTITIONERS MID-TERM EXAMINATIONS AUGUST 2002 ADMINISTRATION OF ESTATES

PAPER 2

MARKS 100

TIME 90 MINUTES.

FOR THE PURPOSE OF THIS EXAMINATION, IGNORE THE RECENT AMENDMENTS TO THE ESTATES ACT _____________________________________________________________________________________ _____ Question 1 [65] Your client, Peter Miller (widower), died intestate on 30-03-2002 leaving the following assets: House valued at Furniture valued at Cash on Savings Account Interest on Savings Account To date of death After death

$500 000. 50 000. 100 000. 10 000. 15 000.

The deceased also held the fiduciary interest over a farm in Gobabis valued at $600 000. On his death this asset had to be sold and the proceeds divided between his two children. Apart from the normal administration expenses, the liabilities of the deceased were: Avbob funeral expenses Bond over the house Total liabilities and administration expenses amounted to

$110 000.

The deceased left the following family: His daughter Jenny Peters married in community of property to Paul Peters, His grand children, children of his predeceased son Trevor Miller, Susan Smuts married out of community of property to Andrew Smuts Benny Miller minor. Draw up the complete Liquidation and Distribution Account, using your own facts where necessary. _____________________________________________________________________________________ _ Question 2 [15] Calculate the Estate fee and Executor's remuneration on estates where the gross value is:- ( answers to the nearest $) 1/ 2/ 3/ 4/ 5/

$ 9 000. $ 14 000. $ 29 999. $ 400 000. $1 200 000.

_____________________________________________________________________________________ ________ Question 3 [10] 1/

Section 18(3) provides that the Master need not issue letters of executorship in small estates. What is the minimum value of the estate in which letters of executorship MUST be issued?

2/

Section 25 provides for a simplified administration of Foreign Estates where no Namibian citizen will be prejudiced. Which Foreign Estates cannot be dealt with under this section?

3/

In terms of section 28 a banking account must be opened when the executor has cash on hand over a certain amount. What is this amount?

4/

Section 43 provides that security may in certain circumstances be given for the inheritance of minor heirs ex an estate. Who can give this security and thereby obtain possession of the minor's inheritance?

5/

Section 34 of the Estates Act gives directions as to how insolvent deceased estates must be administered. Section 34(2) however provides that estates under a certain amount may be administered in terms of directions of the Master. What is this amount? _____________________________________________________________________________________ _ Question 4 [10] 1/

List the facts to be stated in an application for extension for the lodging of an estate account.

2/

When must such application be made?