Nov 98 Que

LEGAL PRACTITIONER'S QUALIFYING EXAMINATION ADMINISTRATION OF ESTATES MARKS 100 1998

PAPER 2

TIME 90 MINUTES

NOVEMBER

QUESTION 1 a/

[35]

Your client dies intestate and the family wishes you to be executor. List the documents that you will lodge with the Master to report the estate and to obtain your appointment. (7)

b/

Your client also owned a sectional title flat in Cape Town. How will you proceed to have your appointment recognised in South Africa and what documents will you obtain and/or lodge with the Master Cape Town. (9)

c/

List the steps to be taken in the administration of an estate from the reporting of the estate until the records can be destroyed. State the time limit laid down by the Act for the compliance with certain provisions of the Act. (19)

QUESTION 2 a/

b/

c/

[25]

The estate of a deceased is found to be insolvent. What steps must be taken by the executor and the Master in: i/

an estate of less than $30 000.00

ii/

an estate of more than $30 000.00.

(11)

Under what circumstances can the provisions of the following sections of the Estates Act be applied: i/

section 18(3)

ii/

section 21

iii/

section 25.

(6)

Draft the notice in terms of section 35( ) in respect of a person who was resident in Witvlei. (8)

QUESTION 3 a/

[40]

The deceased leaves assets to the value of N$1 400 000.00 comprising inter alia the following: i/

Dwelling house $500 000.

awarded

to

the

heirs

at

appraised

value

of

ii/

Shares listed on the stock exchange which are sold for $400 000.

iii/

Shares in a private company valued at $300 000 awarded to the heirs.

iv/

A motor car, furniture and paintings valued at $200 000 awarded to the heirs.

Specify ALL the administration expenses amounting to N$50 000.00. Invent your own facts and figures where necessary. (18) b/

The heirs in equal shares are; i/

The surviving spouse married out of community of property,

ii/

The deceasede's daughter married out of community of property.

iii/

The deceased's minor son.

The heirs agreed to redistribute the estate so that the survivor will receive the assets and pay into the estate sufficient funds so that the children will receive cash. Draw the distribution account.

ANSWERS 1a/

i ii iii iv v

death notice inventory nomination by interested parties acceptance of trust in duplicate bond of security for full value of the assets

1b/

i ii

the estate must also be reported to the Master Cape Town documents to be lodged are; d/n inventory of SA assets 2 x copies of l/e certified for use outside Namibia bond of security for full value of SA assets. (9) Power of attorney

1c

i ii iii iv v vi vii viii ix x xi xii xiii

report estate within 14 days of death open bank a/c on receipt of l/e advertise for creditors determine solvency of estate decide on mode of divestment in consultation with heirs lodge account within 6 months after appopintment advertise account pay creditors and heirs within 2 months after a/c lay for inspection transfer fixed property lodge final requirements obtain filing notice apply fot release destroy records after 2 years after release.

Under i ii iii

$30 000 report insolvency to Master Master will give directions Administer estate in terms of directions

2a

(7)

Over $30 000 i report to Master ii Master will confirm estate over 30 000 iii advise all creditors of insolvency and ask them to decide whether estate must be surrendered or administered i t o sec 34 iv If creditors in number and value requsts surrender, executor must sequestrate estate v If not so directed estate must be administered i t o sec 34. 2b

i ii iii

2c

estated of deceased persond foreign estates where the State as defined in section a foreign estate where only

that do not exceed $15 000 appointment has been granted in a 20 assets consist of movable property.

Notice is hereby given that the First and Final Liquidation and Distribution Account in the estate of the late ............... who died on ....... will lie for inspection at the Master of the High Court Windhoek and the magistrate Gobabis for 21 days from date hereof ................. Executor

3. Notice to creditors government Gazette

10.00*

Advertiser

70.00

Advertisement of account Government Gazette

10.00*

advertiser 70.00 charges

Provision

for

Bank

Master's Fees (maximum)

600.00*

Executor's remuneration 2 1/2% on 1 400 000.00 Sales

Tax

10%

on

90.00

35 000.00*

35

3 500.00*

000 J. Smith Sworn Appraiser Jones and Co costs

800.00

Conveyancing

6 190.00

def Brokers Commission on sale of shares

2 000.00

GHI Inc Auditor's valuation of shares in private

1 500.00

co. V movables

Swart

Valuation

of

300.00 50 000.00

* Exact figures to be given.

QUESTION 1.5 DISTRIBUTION ACCOUNT Balance for distribution

1 350 000.00

To Mary Marcus surviving spouse 1/3 residue in terms of will and redistribution agreement Award consists of. Fixed property shares movables

500 300 200 1 000 less cash contribution 550 450

450 000.00 000.00 000.00 000.00 000.00 000,00 000.00

To Joan Smith married out of community of property. Marital power excluded 1/3 in terms of will

450 000.00

Award consists of cash To Peter Marcus Minor born ........ ID No ............. 1/3 in terms of will

450 000.00

Award consists of cash ___________ __________ 1 350 000.00 1 350 000.00 _____________ ____________ _______________________________________________________________________