ADMINISTRATION OF ESTATES ASSIGNMENT 2010 DUE DATE 30 July 2010.

NO EXTENSIONS OR LATE ENTRIES WILL BE CONSIDERED OR ACCEPTED Use your own facts where necessary QUESTION 1 [27]

Pieter Smit who was a member of the Rehoboth Baster Community, died intestate on 15 May 2010.. He was survived by i His wife Anne, to whom he was married in community of property, ii His daughter, Mary Adams, iii Joan daughter of predeceased son Paul iv John, Minor son of Paul The assets of his estate consist of the following: Farm valued at Movable assets: Motor vehicles Furniture 40 000.00 Investments and bank accounts The liabilities amounted to $ 450 000.00 80 000.00 266 000.00 100 000.00

1.1 Draw up the letter to the Master reporting the estate listing all the necessary documents. The family wish you to be appointed as executor. (12) 1.2 Draw up a redistibution agreement Each heir must receive the same monetary amount that they would have received if it were possible to distribute the assets in speci. (15) QUESTION 2 The will of Peter Thomas, dated June 2005, bequeaths his estate as follows • A/ His Mercedes 220SE to my 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 married in community of property C/ Charles, and Edward, children of his predeceased son Freddy D/ Graham, aged 3 years, and David aged 10 years, adopted sons of predeceased daughter Hanna. He left the following assets A/ fixed property valued at $1 000 000 B/ Mercedes 230SE motor vehicle valued at $200 000 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 $800 000. On his death, this had to be realized and distributed between his four children 2.1 You were appointed as executor on 15th October 2009. You are unable to lodge the account which is now due. Using your own facts, draft a letter to the Master applying for an extension of 2 months. (11) 2.2Draw up the Distribution Account of personal assets (35) 2.3Draw up the Fiduciary Asset Account. (15) [61]

QUESTION 3 In terms of Act 66 of 1965,

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3.1 3.2

Which estates need not be reported to the Master of the High Court? (3) Who must report an estate to the Master? (3) 3.3 Which executors are obliged to furnish security to the Master before being appointed? (4) 3.4 The Master has the discretion to insist on security in certain instances where the executor is exempted. Name these instances? (2)

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