LEGAL PRACTITIONER'S EXAMINATION OCTOBER 2006

MARKS 100 PAPER 2. TIME 90 MINUTES.

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Candidates should use their own facts where necessary.

QUESTION 1 (65)

Your client who died on 15 June 2006 left a will reading as follows:
"I bequeath my fixed property to my wife.
The residue of my estate I bequeath to my wife and my three children in equal shares."

The executor nominated in the will declined the appointment so you were appointed as executor

He left the following family:

a/ His wife to whom he was married out of community of property,
b/ A daughter married in community of property,
c/ A daughter married out of community of property,
d/ A minor grandson, child of predeceased son

The following are the assets and liabilities in his estate:

Assets:
a/ Fixed property situated in Windhoek valued at $800 000
b/ Furniture valued at $50 000,
c/ Motor vehicle valued at $50 000,
d/ Cash and investments in the bank of $500 000.
e/ Rental from fixed property after death $5 000,
f/ Interest from investments in respect of period after death $20 000

Liabilities totalling $200 000 include:

a/ Funeral expenses $8 000,
b/ Bond on fixed property of which $1 000 is in respect of interest after death,
c/ Normal administration expenses.

As the movables cannot be readily divided the heirs entered into a redistribution agreement.

1.1 Draft the redistribution agreement that must be attached to the account. [15]
1.2 Draw up the Following sections of the liquidation and distribution account.
1.2.1 Liability section [15]
1.2.2 Distribution account [20]
1.2.3 Income and expenditure account [15]

QUESTION 2 (14 )

You were appointed on 10th March 2006 as executor in the estate of the late Tomas Brown.
As you are unable to lodge the account, draft a letter to the Master applying for an extension of 2 months

QUESTION 3 (21)

John van Wyk a member of the Rehoboth Baster Community died intestate leaving a net estate of $120 000.00.

He left the following family:

a/ Sarah, his wife married in community of property
b/ Peter his father
c/ Mary his sister

3.1 Draw up the distribution account [13]

3.2 Discuss what will happen if the deceased did not leave a surviving spouse or a parent, or child or
brother or sister. [8]