MARCH 20005

QUESTION 1

LEGAL PRACTITIONER'S EXAMINATION. TIME 90 MINUTES Use your own facts where necessary.

MARKS 100
[15]

Tom Jones died intestate and left his wife Mary, married out of community of property, his minor children born from his present marriage Mabel (aged 8 years) and Benny (aged 6 years), as well as Charles (aged 14 years), a minor son born from his previous marriage with Peggy. Peggy Jones lodged a claim of $60 000 being maintenance for Charles. The balance for distribution, before providing for the maintenance claim amounted to $100 000 1.1 1.2 Advise Mary on her rights in respect of the maintenance claim. Give (3) three methods of calculating a minor’s claim for maintenance. [65] (9) (6)

QUESTION 2

Peter Smith died on 1 June 1995. He was survived by his wife Anne, to whom he was married in community of property, his daughter, Mary Adams, Joan daughter of predeceased son Peter and John, adopted son of Peter The assets of the joint estate consist of the following: House valued at Movable assets: Motor vehicles Furniture Investments and bank accounts An insurance policy A policy on the life of John with a surrender value of The liabilities consist of the following: Funeral expenses Administration expenses and other claims The deceased died intestate. Prepare the Liquidation and Distribution Account taking into account the requirements of Regulation 5. Use your own figures and facts where necessary and specify the administration expenses and claims against the estate. (Cents can be ignored). QUESTION 3 [5] 4 000.00 60 000.00 $ 450 000.00 80 000.00 40 000.00 265 000.00 130 000.00 3 000.00

A testator bequeaths his farm to A, and leaves the residue of his estate to B. After his death the executor ascertains that a mortgage bond is registered over the farm. There is no life insurance cover linked to the bond. An amount of $50 000.00 is still owing on the bond. Explain how the executor should deal with the bond. QUESTION 4 [15]

Calculate the Master’s Fee and Executor’s remuneration in estates where: 3.1 The gross assets amount to (a) $45 076.00 (b) $723 159.00 ..(c) $999 700.00 3.2 the personal assets amount to $ 845 000.00 and Fiduciary assets amount to $360 000.00 (show each separately)

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