Oct-02 Que

LEGAL PRACTITIONERS EXAMINATIONS OCTOBER 2002 ADMINISTRATION OF ESTATES

PAPER 2

MARKS 100 TIME 90 MINUTES. _____________________________________________________________________________________ ________ Question 1 [65] Your client, Joe Smith, died intestate on 30-09-2002 leaving the following assets: House valued at Furniture valued at Shares in Smith & co (Pty) ltd Shares in Gold fields Ltd Dividend on Gold Field shares declared after death Total liabilities and administration expenses amounted to

$500 000. 50 000. 150 000. 50 000. 20 000. $100 000.

The deceased also held the fiduciary interest over shares in Barlows Ltd valued at $500 000. Dividends declared prior to death on the Fiduciary shares amounted to $50 000 On the death of Joe Smith the fiduciary shares devolve on his Brother Tom. The deceased left the following family: His Brother Tom. His daughter Jenny Peters married in community of property to Paul Peters, His grand children, children of his predeceased son Trevor Smith, Susan Smuts married out of community of property to Andrew Smuts Benny Smith minor. Peter Smith, Adopted son of Trevor. 1.1 1.2

List the documents necessary for you to be appointed as executor. (8) Draw up the following sections of the Liquidation and Distribution Account, using your own facts where necessary: 1.2.1 Liabilities section 1.2.2 Distribution account 1.2.3 Fiduciary asset account 1.2.4 Income Account ( 57) _____________________________________________________________________________________ ________ Question 2 [10] You were appointed as an executor on 25th March 2002 but you are unable to lodge the account. Draw up an application for extension _____________________________________________________________________________________ ________ Question 3 [15] Using your own facts, draw up an application for a section 38 taking over where minors from a previous marriage of the deceased are involved _____________________________________________________________________________________ ________ Question 4 [10] The joint will of John and Mary, who were married out of community of property, created a massing. In terms of this will the estate is bequeathed to John’s minor children from his previous marriage subject to Mary’s usufruct. The will is silent as to security for the minor’s portions. On John’s death, Mary comes to you for advice. Describe the consequences should Mary: 4.1 4.2

Adiate or, Repudiate the will.