Mar-98 Que

LEGAL PRACTITIONER'S QUALIFYING EXAMINATION MARCH 1998 MARKS 100 TIME 3 HOURS ______________________________________________________________ _ QUESTION 1 [58] ___________________________________________________________________________ John Brown has died and you have been appointed as executor in his estate. At the time of death, he and his wife Anne, were married out of community of property and although estranged from each other, no divorce proceedings had been instituted. John leaves two children, Susan a married daughter and a minor son Peter. In terms of the will the furniture is bequeathed to Susan while the residue is bequeathed to the two children in equal shares. The assets consists of: a/ b/ c/ d/ e/ f/ g/ h/

Immovable property Motor vehicles sold for Furniture valued at Fixed deposit at XYZ bank Current account with XYZ bank Shares quoted on the stock exchange Namsea Ltd sold for Nictus Ltd sold for Shares in ABC (pty) ltd Loan account in ABC (Pty) Ltd

The liabilities which include, the normal administration costs, funeral expenses, last illness expenses and a bond over the fixed property amounts to 1.1

$500 105 63 400 21 350

000 000 000 000

350 000 147 750 775 000 376 950

325 480

Draw a complete Liquidation and Distribution Account for submission to the Master of the High Court. Use your own particulars where necessary. You must also provide for normal administration expenses, Master's fees and Executor's remuneration. Note: Where full description of Assets are not given, you must make provision therefore. All other items which, as a rule, normally appear in a Liquidation and Distribution Account must be included. (48)

1.2

State fully which documents must accompany the account. (10) ___________________________________________________________________________ Question 2 [12] ___________________________________________________________________________ 2.1

Name the instances in which an executor dative can be appointed by the Master of the High Court. (6)

2.2

State whether the following statements are true or false. a/

An executor is prohibited in general to make interim advances to heirs and legatees.

b/

One of the conditions for a take-over in terms of Section 38 is that the assets in question must not be subject to a Fideicommission.

c/

When cash deficit arises, the executor may realize the assets forthwith.

d/

A women married in community of property is not capable of acting as Executor.

e/

The typist who types the last will of the testator can be appointed as executor in the will.

f/

Cash Investments, such as cheque deposits, savings accounts, fixed deposits and Building Society Shares, cannot be called up by the executor without the consent of the Beneficiaries.

g/

If the Executor is requested to complete and submit the income tax return of the deceased, he is entitled to an additional remuneration for professional services rendered.

h/

An Executor, who is also a conveyancer, may charge the estate for transfer costs.

i/

A person who married a witness to a will, after same was executed, may not inherit under thereunder.

j/

A foreign executor who must only deal with movable propertyis in terms of section 25 not required to furnish security.

k/

An executor appointed by the Master can in terms appointment deal with assets situated outside Namibia.

l/

If there is insufficient space on the last page of a will signed with a mark and the certifying officer's certificate appears on the next page, the certifying officer need not sign the page on which the will ends.

m/

The spouse of the writer inheriting under that will.

of

a

will

is

of

disqualified

his

from

(6) ___________________________________________________________________________ QUESTION 3 [30] ___________________________________________________________________________ 3.1

You as executor appointed on 16th August 1997, are unable to lodge the liquidation account within the prescribed period. Draft the application for extension. (8)

3.2

What must be lodged with the Master by the executor if a substantial asset comes to light after the First and Final Liquidation and Distribution Account has been lodged and approved. (2)

3.3.1

How does an executor deal with a continuous claim against the estate such as a claim for maintenance by a minor child from a previous marriage?.

3.3.2

What documents thereof.

3.3.3

The mother of the minor wishes to give security for this claim. Discuss. (12)

3.4

must

be

lodged

with

the

Master

in

support

A man dies in testate leaving a spouse, married in community of property, a major son A and two grandchildren B and C, children of a predeceased daughter, X. C was adopted by X.

3.4.1

Divide the estate amounting to $120 000.

3.4.2

How would the estate be divided if the deceased was married out of community of property?

3.4.3

Will your answer in 3.4.2 be different if the adopted grandchild was the child of another predeceased daughter? If so how? (8) ___________________________________________________________________________