Task 07

ADMINISTRATION OF ESTATES TASK 1 ANSWERS Question 1.1 Both natural guardians are responsible for the maintenance of their minor children. Peggy has therefore a legal claim against the estate for the deceased’s share of the maintenance. In terms of the decision in Zietsman and Bastard v the Master, the claim for maintenance must be set off against any inheritance that the minor receives from the estate. As the minor’s inheritance exceeds the claim for maintenance will then fall away. [7] Question 1.2 In terms of section 43 a natural guardians may not give security for a claim for maintenance, however as the maintenance claim falls away there is nothing to prevent Peggy giving security for the minor’s inheritance. [5] Question 1.3 AGREEMENT We the undersigned Sara Smith Mabel Smith assisted by Sara Smith Charles Smith assisted by Peggy Smith And Sally Peters Agree that the estate of Joe Smith will be redistributed as follows Sara will receive ………….. …………. Less cash paid in…………… 676 250 Mable will receive cash of … 51 250. Charles will receive cash of ………51 250. Sally will receive cash of … 51 250.

Signed at …………………….. this ……………day of …………………. Sara Smith …………………… Sara Smith on behalf of Mable Smith …………… Peggy Smith on behalf of Charles Smith …………. Sally Peters …………………. …………………

Witness …………………… [14]

…

Question 1.4 First and final Liquidation and Distribution account in the estate of the late Joe Smith ID no ……. who died on ……… and surviving spouse Sara Smith Married ICOP Masters no ………….. [6] Liquidation account ASSETs Erf …………. Held under t/d no …….. Valued at Awarded to ………….. ITO redistribution agreement ………………. Car valued at Household furniture valued at Awarded to ………….. ITO redistribution agreement Shares in ………………… Awarded to ………….. ITO redistribution agreement Cash in ……………… Liabilities 5 Advertisement for creditors Government Gazette 20 Namibian 4 230 Advertisement of Account Government Gazette 20 Namibian 230

600 000 00 80 000.00 20 000.00 150 000.00 50 000.00

5300

[12]

6 7 8 9 10 12 13

Masters Fees Executors remuneration 31 500 VAT 4 725 B Joseph valuation costs 5 Jenkins & co Transfer fees 6 Bank charges AVBOB Funeral costs 7 (claim for maintenance falls away as inheritance exceeds claim) Balance for distribution

2 700 36 225 ……….. ………… ………… 10 000 830 000 900 000 900 000

[10]

Recapitulation statement Cash available Liabilities Shortfall paid in by ……………….

50 000.00 65 000 15 000.00 65 000 65 000.00

[2]

DISTRIBUTION ACCOUNT Balance for distribution To Sara Smith (Jones) surviving spouse ½ by virtue of marriage ICOP ½ funeral expenses ½ balance ITO act Childs share Award consists of Fixed property Movables Less cash contribution

830 000 415 000 5 000 205 000 51 250 600 000 100 000 23 750

676 250

676 250

To Mable Smith Minor born ………. Id no ………………. Award consists of cash

51 250

To Charles Smith Minor born ………. Id no ………………. Award consists of cash

51 250

To Sally Peters Major Award consists of cash

51 250

830 000

[22]

830 000

INCOME ACCOUNT No income collected FIDUCIARY ASSET ACCOUNT No fiduciary assets CERTIFICATE I ………….. Hereby certify that the above account is true and correct and that there are no further assets or income to be accounted for. Signed at ………………. This . day of ………….. 2007 ………………………. EXECUTOR

[7]

Question 2.1 DISTRIBUTION ACCOUNT Balance for distribution To Andrew Thomas Major 1/3 in terms of the will Award consists of Cash

1 350 000 450 000

To Betty Thomas Major 1/3 in terms of the will Award consists of Cash

450 000

To Charles Thomas major 1/6 ITO will and sec 115(bis) Award consists of Cash

225 000

To Edward Thomas Major 1/6 ITO will and sec 115(bis) Award consists of Cash

225 000 1 350 000

1 350 000

[14]

Question 2.2 FIDUCIARY ASSET ACCOUNT Proceeds of ½ share in Certain piece of land ……………….. Masters Fees Executors commission 8 750 Vat 1 313 (1312.50) Balance for distribution

250 000 441.18 10 063 239 495.82 250 000

250 000

Distribution Balance for distribution To Andrew Thomas Major 1/2 in terms of the will Award consists of Cash To Betty Thomas Major 1/2 in terms of the will Award consists of Cash

239 495.82 119747.91

119747.91 239 495.82

239 495.92

[13]