Task 07

ADMINISTRATION OF ESTATES ASIGNMENT NO 1 TO BE HANDED IN ON OR BEFORE 29TH JUNE 2007 NB. NO EXTENSION WILL BE CONSIDERED OR GRANTED. MARKS 100 Bear the provisions of the Children’s Status Act in mind and use your own facts where necessary. QUESTION 1

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Joe Smith a member of the Rehoboth Baster Community, died intestate and left his wife Sara, married in community of property, his minor daughter Mabel born from his present marriage, Charles, a minor son born from his previous marriage with Peggy as well as a daughter, Sally born out of wedlock. His assets consist of

A, B C, D

The liabilities are

1.1 1.2 1.3 1.4

A, B, C,

Fixed property valued at $600 000 Motor vehicles and furniture $100 000 Shares $150 000 Cash in the bank $ 50 000 Administration costs totaling Funeral expenses Claim by Peggy Smith for being maintenance for Charles.

$55 000 $10 000 $30 000

Discuss briefly the merits of the maintenance claim, (7) Peggy offered to give security for the maintenance claim. Discuss. (5) As it is not practical to transfer the assets to the heirs, a redistribution agreement was entered into. Draw up such agreement. Each heir must receive the same monetary value of the estate as if no agreement was entered into (14) Draw up the Liquidation and Distribution account . (47)

QUESTION 2

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The will of Peter Thomas dated 4th Dec 1985 bequeaths his estate as follows • A/ His Mercedes 220SE to his son Andrew • B/ the residue of his estate to his four children He left the following family:A/ his son Andrew B/ His daughter Betty C/ Charles, and Edward, children of his predeceased son Freddy D/ Graham minor adopted son of predeceased daughter Hanna. He left the following assets A/ fixed property valued at $800 000 B/ Mercedes 230SE motor vehicle valued at $100 000 C/ shares valued at $200 000 D/ cash of $100 000 The total liabilities and administration expenses amounted to $100 000 To facilitate the distribution, the residue of the estate was reduced to cash He also held the fiduciary interest in fixed property valued at 500 000. on his death, this had to be realized and distributed between his four children

3.1 3.2

Draw up the Distribution Account of personal assets Draw up the Fiduciary Asset Account.

(14) (13)