Wills and Estates: Monday, 19 April 2021 16:43

Wills and Estates
Monday, 19 April 2021 16:43
Presented by Johann van Eck and Francois de Wet.

60% of exam paper liquidation and distribution
accounts. Be attentive tomorrow for this.
Paper 2 is Wills and Estates. Prepare on his study
material and the theory presented tonight. Then
you will pass really well.
For paper 2, prepare yourself on the following four
Acts:
1) Wills Act: will be a theory question or more
based on this Act.
2) Interstate Succession Act: will be a theory
question on interstate succession. But there
can also be an entire liquidation and
distribution account based on this Act.
3) Administration of Estates Act: how to
administer an estate of the deceased.
4) Estate Duty Act: Estate Duty is a tax. Must be
able to calculate the ED on the assets of the
deceased.
So questions on these four Acts will be in the exam

in August.
Tonight we will start with the Wills Act.
Part 1: Wills Act

You can execute a will while you are alive. When
you pass on, your estate will be administered in
terms of your will. Or, like most Sans, who didn’t
execute a will, you will pass away intestate.
Your estate will be administered in terms of the
Interstate Succession Act.
Page 3 of LEAD manual: the Wills Act No 7 of 1953

Page 4 of LEAD Manual: Interstate Succession; first
bullet, the ISA No 81 of 1987
Page 6 of LEAD manual: the Testate Succession ito
statutory will. The deceased executed the will
while still alive. And when he passes away, will
pass away testate.
Para 1.2.3 Page 6: Formalities prescribed by Wills
Act. No will shall be valid unless it is in writing.
Signed at the end of the will by the testator or
some other person in his presence and by his
directions. The testator must sign at the end of the
will and if he cannot, and asks someone else, such
person must also sign at the end of the will.
In the presence of two or more competent
witnesses present at the same time. Who is a
competent witness? Ito section 1(1) any person 14
and older who is competenet to give evidence in a
court of law. (This was a theory question in the
march exam paper).
Page 7: If such witnesses attests and signs in the
presence of testator, if the will consists of more
Wills and Estates Page 1

presence of testator, if the will consists of more
than one page, each page must be signed by the
testator anywhere.
When must a testator sign a will? Last page at the
end (popular question in exam)
Witnesses are only wrequired to sign the last page
of the will. Anywhere on the last page (this was a
past exam question: where must a witness sign?
Anywhere on the last page. Doesn’t have to sign
anywhere else).
The testator must sign at the end of the wil in the
presence of two witnesses. And the witnesses
anywhere on the last page.
Signing includes making of initials. Only testator
can sign by the making of a mark
If testator signs by making of a mark, or someone

signs on his behalf, the commisioner of oaths must
certifiy that he has satisified himself as to the
identity of the testator. Must sign each page of the
will. ANYWHERE on the page. Excluding the page
on which the certificate appears, which is at the
end.
Must be signed and witnessed in the presence of
commissioner of oaths. Will certify will as soon as
possible. If T dies before certification, will then as
soon as possible thereafter certify the will
CoO cant act as witness AND certify.
CoO also asked as theory question in past exam.

Theres only a certificate if the T instructed
someone else to sign the will on his behalf OR the
T signed the will by making a mark.
If the T can sign the will, not necessary for CoO
certificate.
Wills Act and Interstate Succession Act

Page 38 of LEAD Manual: clauses to include in will
November 2020 they asked to draft an entire will
for 18 marks.

LAST WILL OF (name of testator)
1.4.1 Know the T's ID number and current address
1.4.2 Revocation clause. Page 39. "I revoke all

previous wills." See what's in inverted commas.
1.4.3 Appointment of executor and trustee. Page

40 second paragraph. See what's in inverted
commas.
Combine 1.4.3 and 1.4.6. The assumed executor.
Add what is in inverted comma. Lets say it’s the
senior partner of your firm. "I give my executor the
right of assumption" This means he can appoint
anyone in the employment of his firm to
administer the estate.
Professional fee: not on the screen. Not necessary

but they can ask yo uto make [provision for it.
Remember when there is immovable property that
is bequeathed to an heir and you're a
conveyancer, you are entitled to a fee for the
transfer of property from deceased's name to the
heir. You'd be entitled to this over above the
administrators fee.
1.4.5 Security: If intestate, the master will ask the

executor to present security equal to the value of
the estate. Then the testator can make provision in
his will that it is not necessary for you who will
administer the estate to provide security. Page 41
See what's in inverted comma.
Page 42. 1.4.9 Legacies: In the March exam, they

were asked to explain legacies.
Legacies are specific assets bequeathed to specific
heirs. Or depending on the facts in the question
you will mention the legacies (assets) first and the
legatees (heirs)

legatees (heirs)
Last sentence, first paragraph.
1.4.10 Heirs
The residiary heirs. Always good to make provision
for these heirs. Will inherit the residue. The
residue will be those assets that are not
bequeathed to specific heirs (legatees). They will
form part of the residue and you will award the
residue to the residiary heirs.
The heirs succeed to the residue of the estate. See
what's in inverted commas.
If you don’t appoint a residiary heir in a will and
only legatees, then the residue will be inherited ito
the interstate succession Act.
Please note, only in a will can you appoint legatees

that will receive legacies. Interstate there is no
will. All the heirs, intestate, are known as residiary
heirs.
1.4.11 Simultaneous death: all depends on the

facts of the question if yoy must make provision
for simultaneous death.
1.4.12 Limited interest (this is popular)

Fideicommissum and usufruct.
The owner of farm bequeathes farm to his son on
condition that the day that he passes, the
grandson will inherit the farm. The son is known as
fiduciary heir. Will not have freedom of testation.
Fidcuairy heir cannot bequeathe the farm. The
farm must be inherited by the grandson. The
grandson is the fidecommisary heir. In practice,
the executor will transfer the farm in the deeds
office to the fiduciary heir with a stipulation that
on the day the fiduciary heir passes, it will be
inherited by the fideicommisary heir.
Usufruct: the deceaased has an apartment, he
bequeathes farm to a trust or child, on the
condition that the surviving spouse will enjoy a
usufruct (a lifelong usufruct) or on the until she
gets married again. The trust of the son will
become the owner, registered in the deeds office.
But will not enjoy the use.
I bequeathe to A on the subject that A's death, will

go to B. (fideicommissum)
I beq to the children born of my marriage subject
to life usufruct or when she will get married again
over my estate in favour of my wife (usufruct
example)
1.4.13 Habitatio and Usus
1.4.14 There is not a clause in your manual on

page 45.

Each estate must make provision for the above.
You bequeathe assets to the children. The spouse
can get married again. The children will get
married as well one day. Now you don’t want the
inheritance they'll receive to form part of the
accrual or a marriage ICOP.
ICOP theres only one estate and each spouse is
entitled to one half of the assets.
You don’t want the inherittance your child will
receive to form part of that asset when they are
calculating the onehalf.
Lets say the estate is worth 1million. You got
married Icop. The child is entitled to 500 000 and
the other spouse 500 000. The inheritance
received by child is 500 000. You don’t want that
500 000 to be added to the value of the estate
ICOP. Then your child will receive their 500 000
and still remain the inheritance.
Signature: testator/other person/ commissioner of

oaths signs anywhere on the page
This is why you're asked to draft a will of no more
than 2 pages.
1.4.15 Collation
Make provision that there will be no collation.
Bringing in what you received while deceased was
still alive.
March paper, they were asked to explain collation.

1.4.16 page 46: Appointment of Guardians (Minor
children)
As soon as they tell you in question that theres a
minor, must make provision for the appointment
of guardians.
1.4.19 Testamentary Trust

Can be told in exam that your client, the testator,
would like you to make provision that the
inheritance of the minor or subject person must be
protected.
If you don’t create a testamentary trust, then the
inheritance will be paid over to the guardian fund.
In the office of the Master of the High Court.
Then you must make provision for a testamentary
trust.
The heirs may be minor or mentally incapacitated
at time of testators death. In order to avoid
inheritance going to guardians fund, the T may
make a TT in order for the trustees to administer
the minors portion until the reach the age of
majority or some later date.
Page 48: example of TT
Page 61. They can tell you in exam that theres a

minor child and youre thinking TT. Then they tell
you that you’ve received instruction to draft a will.
Your client wants the inheritance of minor
protected. But they also tell you that he's not
interested in a TT. Page 61, theres a third option.
Alternative clause to the trust. Only applicable for
minor heirs. Send to guardian of minor child.
Either the TT, Guardian Fund or the Guardian.
1.4.21 Attestation clause (asked in March exam)

Not requirement of Wills Act. Not requirement to
date a will.

T signs at the end in the presence of witnesses.
And the T must be 16 years or older. The witnesses
sign anywhere on the last page, at least two of
them. Must be older than 14 years.
Page 8, para 1.2.4

"which have been drafted an executed" those
words, some divisions of the HC interpret it as
drafted and executed. That even when a client
instructed an attorney to draft a will and filled out
a questionnnaire, and drafted will based on
questionnaire. And the deceased pass away and
couldn’t sign will. They accepted the information
on questionnnaire. Its in writing. Its valid. Called
the liberal approach by certain divisions of the HC.
Other divisions had a stricter approach and said
no.
Page 11: following cases adopted strict approach

Page 12: cases followed the liberal approach
Bottom of page 12: matter settled in SCA case.
Page 14: electronic wills. Mcdonald v the Master

(page 15) T's personal involvement must be
proved during the drafting. That the deceased died
after drafting.
Forgery - page 16
Page 17 - Undue influence.

Last para on page 17: has there been a
displacement of volition and whether the will
contains the wishes of someone other than the T?
Page 18: section 2(3) to accept a will. Draft it and

execute by the T himself. Then you can make use
of section 2(3) of wills Act and approach court to
make such will valid.
Page 18: Amendments

Can amend clause of will and it must be signed by
T in the presence of two witnesses. The T will
make a mark or ask someone to sign on his behalf,
make provision for CoO certificate. Can amend
clause in will by way of a codicile.

clause in will by way of a codicile.
Example of cert by CoO
Cert when theres an amendment
Above is an example of a codicil. Must be signed

by T in the presence of 2 witnesses.
Last few exams, the codicil or an amendment was
not asked. So its about time they asked about it in
the exam. To draft an amendment for 6-8 marks.

the exam. To draft an amendment for 6-8 marks.
Page 19: Power of the HC to declare a will to be

revoked. If theres more than one will, can go to
court to have one revoked.
Oral revocations are not recognized by the

common law or the Wills Act.
Popular in exam (see below)
Can be given scenario of this in exam. Answer for

3/4 marks.
Effect of divorce or annulment on will

Section 2B Will Act
Change of status has no effect on will. Has no sell
by date. Save for three month indulgence in
section 2B of the Act.
You have descendants, and now you wanna

renounce your inheritance in favour of your
descendants. And there is a surviving spouse. Can
be your step mother or step father. You want to
renounce your inheritance in favour of your
descendants but there are surviving sppouses.

descendants but there are surviving sppouses.
Section 2C of Wills Act, then your surviving spouse
will inheirt your inheritance.
Section 2C(1) can only renounce in favour of
descendants in terms of section 2C(2), where there
is no surviving spouse.
Para 1.2.7 page 22. If any descendant of a T,
excluding a minor or mentally ill descendant, who
together with surviving soiyse of T is entitled to a
benefit, and the
2C(2) if descendan
Nasciturus fiction asked in November exam
Where a witness is a beneficiary, must make

provisions for another two competent witnesses
who are not named in the will.
Benefit includes the nomination of someone as
executor or guardian
Ito common law, following are excluded as

beneficiaries.
Unduly influenced the T to give him a benefit
Person who is unworthy: where beneficiary
murdered the T
Person who concealed will of the T
Forging will of deceased.
Page 29: Drafting of wills
You execute a will. A single will, one persons will or

a joint will. JW consists of two Ts. They
bequaethed all assets in one will. That’s a joint
will.
1.3.2 Vesting (can ask you to explain vesting)

Last para. Can ask you to explain…..see the vocab
on page 31.
Agricultural immovable property. A farm. If you

bequathe it to more than one natural person, then
ito Agri Act, executor must first get permission or
approval from the minister of agriculture befor
ehe can transfer the farm into more than one
natural persons name. That farm is only viable if it
is bequeathed as a whole. If you subdivide it, then
maybe one part may be viable and the other is
not. Or both parts are not viable.
If its to a trust or company, then permission of
minister not necessary
Proceeds for pension funds (was in past papers)

Cant bequeathed proceeds of pension fund in your
will to an heir. Can make contract with trustees of
these funds and nominate a benficiary, they will
decide to whom they will pay the amount. You
cant bequeathe a pension, providen fund, group
life scheme, retirement annuity fund.

life scheme, retirement annuity fund.
Page 32, bullet 2

Not in ED addendum, the trustees of these funds
before paying out amounts, they refer the lump
sum paid to SARS and then they get directive from
SARS asking for the amount to be deducted as tax.
Wont get the gross lump sum but the net.
Page 34, the fideicommissum
Page 8-15: study Van Ecks material for this.

Because he explains marriages ICOP and OCOP.
The examples in LEAD manual is only based on
marriages OCOP. Will be in exam
Single person, ICOP, OCOP: must be able to draft

liquidation account for these intestate/testate.
Deceased passes. Theres a surviving spouse. ICOP

so one estate and each spouse is entitled to half of
the estate. Survivor wont inherit the one half
entitled to but that of deceased ito section 1(1)(a).
OCOP two estates. SP will inherit the estate of the
deceased ito section 1(1)(a)
Polygamous union, divided equally among the
spouses ito section 1(1)(B)

Wills and Estates (Lecture 2)
Tuesday, 20 April 2021 17:03
Page 82: Reporting the estate

Para 2.6
2.6.1 the death notice: contains the personal details of a deceased
2.6.2: the death certificate

2.6.3: the original will.
• 2.6.4: an inventory ito section 9 of the administration of estates Act.
Purpose is to determine the value of the estate, 250000 or less or more.
If 250000 and less, then the master will not appoint an executor to
administer the estate.
• The master will apppoint representative and as soon as the rep realizes
the value of the property is more than 250 000 then the master will
apoint an executor to administer the estate formally. That is the purpose
of the inventory.
Section 9, provisional inventory. Must be lodged with master. To enable

master to determine amount of security required.
Page 83 and 84.
2.6.5 the acceptance of trust as executor.

2.6.6 the next of kin affidavit and nomination by heirs. Applicable when
deceased passed away intestate. No executor appointed.
****Missed some stuff here while talking to Lisa****
One for the deceased and one for the surviving spouse. Only administer the
estate for the deceased.All the assets and the liabilities.
OCOP: 2 separate estates (can ask customary law in the exam)
Only the estate of the deceased and based on OCOP.
Same for a civil union that registered an agreement, you will administer the
estate of the deceased based on OCOP.

estate of the deceased based on OCOP.
ICOP. The surviving spouse is entitled to one halfs share. Theres only one estate. You must
administer the entire estate but keep in mind that the survivor is entitled to one half of the
estate by virtue of the marriage and the deceased is entitled to one half
Deceased can bequeathe his half to whoever he wants but they must execute a joint will.
ICOP there must be a joint will.
OCOP or single person, single wills.
Each spouse is liable to pay one half of the liabilities except for the funeral expenses. Each
spouse must pay for his or her funeral expenses.
The reason why you must administer the entire estate when its in ICOP, the minute the one
spouse passes away, that marriage was dissolved by death. And in effect the survivor is
without an estate. You must administer the entire estate so that you can receive your one
half share. Shes in the entitled to it by virtue of the marriage ICOP.
The reason why they should pay for their own funeral expenses. The day the deceased
passed away, there was no longer a marriage, the deceaseds half must pay for his funeral
expenses. Because the day the survivor passes away, there will be no spouse to contribute
towards her funeral expenses.
They tell you the deceased was married ito customary law or civil union and did not register
an agreement, then its based on ICOP. So you must determine the marriage status, is it
OCOP or ICOP.
The income and expenditure account after death. Assets at date of death in the liquidation
account. After death its known as income and expenditure.
Fideicommisum you record in the fiduciary assets account. Whatever T had freedom of
testation over goes into the liquidation account.
Although the EDA is the eighth bullet, it forms part of billet 3. Part of the liabilities in the
liquidation account.

liquidation account.
In the exam, the date of death is NB. You will mention it in the heading. At the end of the
question they wont telll you when as the executor you were appointed. What you do is add
six months to the liquidation account, to get an idea of when you must lodge your account
with the master.
In a theory question, you start counting six months from your appointment as executor. If
they don’t give you date of appointment, then you add six months from date of death. And
then that date is when you must lodge the account.
Normally they give date of death in the first two paragraphs but read the paper carefully.
Testate? Wills Act. Intestate? Intestate Succession Act
Are you registered as a VAT vendor or ot?
Page 5: Question 1. (sound foundation of a liquidation and distribution account)

If we come across an asset, when drawing the liquidation account, and the asset is not mentioned under A to D, your legacies
and legatees, we come across an asset when we record in the liquidation account and not mentioned under A to D, then such an
asset will form part of the residue and James is the residiary heir. They will always tell you when someone is a minor in the exam.
So if they don’t mention it, assume they are a major.
Page 8
Page 9
Will make provision for voucher, liabilies/debits and the assets/credits.

Assets will always be higher than the liabilities.

Assets will always be higher than the liabilities.
Describe the asset, the valuation, your proof of the value of the property.
Divestment note: you indicate to whom you will award the assets in the distribution account or what did you do with the assets.
Once you are done with immovable, start with 2, moveable. Do the DVD (description, valuation and divestment note) for all
movable property
Cash assets of the deceased he had at time of death.
Assets must always higher than the liabilities.

Subtract liabilities and EDA to calculate the amount available for distribution and that’s the amount you'll carry forward to the
distribution account.
Must start with the heading. A heading in the exam is 4 marks.
'1 Immovable property' 3 marks

Must refer to the deed of transfer. And you make up the number of the title deed.
Sworn valuation: you appointment an appraisor, and you receive a valuation. And that valuation is your first voucher. Put a 1 in
voucher
Divestment note: (Awarded to Jo--Anne Smith, surviving spouse)
Married OCOP
Bought a farm registered in both their names in equal shares. Now we must adminsiter his estate. You record only his one half
share. Undivided half share in the farm WINDMILL. name the town, registration division JR and the province
The extent the farm is in hectares and held under a deed of transfer,
Valuation is 2.6mil but he is only entitled to one half. And you record only his share in the liquidation account. 1.3mil. Voucher
number 2
Divestment note: (Awarded to Jo--Anne Smith, surviving spouse)
Foreign assets? You will not record in liquidation account. In your ilquidation account you record assets in South Africa.
Will not record forest hills farm. He was not an owner of that farm. Only 40% share in it. Which was sold.

Will not record forest hills farm. He was not an owner of that farm. Only 40% share in it. Which was sold.
Fruits from an asset the deceased have. If you receive fruits/dividends, coming from an asset that the deceased had at the date
of death (750 shares in AJ engineering) then you will record the fruits in your income and expenditure account as income.
To record income, or to identify income, you must always ask yourself: the amount received, are they fruits coming from an asset
the deceased had at date of death? Then those fruits will be income, that is how you identify income
If an asset the deceased had at date of death, was sold in the course of administration, then you will record the selling price in
the liquidation account
Shares you record as movable property. Doesn’t mean you'll record them as claims in favour of the estate.
The assets not realized to cash (farm. Furniture, vehicle) you awarded them to heirs. But cash must first be paid to the estate
bank account.
You will never award any cash in your liquidation account in a divestment note.
1.25 million is sufficient to cover the legatees.
The entire amount into estate bank account (never award cash to someone from liquidation account. No divestment note)
Executor receive 1.25mil from John Clegg

Executor receive 1.25mil from John Clegg
A= policies on the life of the deceased taken out by the deceased.

B= policies are policies on the life of the deceased but taken out by another.
a+b will have maturity value or gross value when deceased dies.
You will always work on the maturity value for your category A and B policies.
Starting with A

Category A policies
A1: means it was registered in the deeds office.
A2: nominated to receive the maturity value. Not the estate.
A3(i): no nominated beneficiary or they say the estate is nominated
A3(ii): credit cover policy. Deceased took out policy to cover liability like a mortgage bond.
Category B policies
B1: must be a reason that the one who took it out, took it out, there was a buy and sell agreement to acquire an asset of
deceased
B2:
B3
B4: there is a reason.
Money you did not receive, you will record in the liquidation account

Record A(3)(i) and (ii) as a claim in favour of the estate
B1 and 2, not the maturity value but the purchase price ito the agreement to acquire an asset of the deceased
The amount the executor received in the liquidation account. If he didn’t receive amount then wont be recorded in the
liquidation account
If they tell you in exam that he nominated a beneficiary, and you know it’s a category A2 nominated beneficiary, and they tell
you that he cancelled the beneficiary, then it becomes a category A(3)(i) policy. Or they say that the nominated beneficiary
predeceased the deceased. That means the beneficiary is no longer alive. Was not alive when deceased passed away. Then such
policy will become a A(3)(i) policy. You will record it as a claim in favour of the estate, the maturity value. An A2 can become an
A3(i). Cancelled beneficiary or a beneficiary predeceased the deceased.

Know a description for immovable property for the exam

Wills and Estates Lecture 3
Wednesday, 21 April 2021 17:02
R37.82 (amount must be correct for GG)

Section 29, make provision for section 35 advertisement. GG and local newspaper. Anyone with
objection to approved account, can launch it with master.
Advertisement only after approval of account.
Bank charges: make up the amount

R260 fixed, for the postages and petties (must be correct for the exam)
Appoint the stockbroker to sell the shares.
Transfer costs: estate liable to pay TC to move immovable property from the deceaseds estate to the
heir.
The bond itself is a claim against the estate. Registered in the deeds office. And now you must cancel
that bond at the deeds office.
Master's fee: this amount must be correct.

Executors remuneration. 3.1% of the total assets. VAT vendor amount as well.
Page 15: expenses of which the amounts must be correct in the exam
Section 29 and 35
Postages and petties
Masters fees
Executors fee and if registered vat vendor
The rest you can make it up.
Once you have recorded all, you will have your claims against the estate.
Page 16: claims against the estate

Estate Duty Payable by Estate
Here you now start with the Estate Duty Addendum (EDA)
No masters fee paid if estate worth less than 250000, no adminstration needed.
If worth more than the R250000 to 400 000, you pay R600
Maximum for masters fee is R7000. you reach that amount when the gross value of the estate is
3.6mil
If your total assets are 3.6mil or more, you will not use the formula to calculate masters fee, it will
just be R7000
In the example, you divide by 100 000 to calculate how many 100 000s there are.
Only apply the formula is the total assets are between 250 001 and 400 000

What you record in your EDA will be recorded in liquidation accounts.
EDA is in terms of Estate Duty Act
The property consists of 3(2) property and 3(3)

3(2) property the deceased enjoyed while he was still alive.
3(3) property the deceased did not enjoy
There is no way a deceased can enjoy the maturity value of a policy.

Accrual claim by the deceased. While he was still alive he knew he was married with the accrual, the
accrual claim will be calculated. Can only calculate acccrual after the date of death of the deceased.
No way for deceased to enjoy the accrual claim. It’s a property 3(3)
Calculate value of 3(2) property. Then you add property 3(3)
In exam, leave out the numbering.
Less 30% of the value you recorded in the liquidation account.

So bona fide farming, subtract 30% of the value you recorded in the liquidation

All information for number 3 is in the liquidation account
For number 4 you go to the claims against the estate
As the deceased enjoyed unlimited interest, fideicommissum, that unlimited interest is now
inherited by the fideicommissary heir.
Must calculate the value the fideicommisary heir will enjoy. And once you have number 5, you get
the actual value of the 3(2) property.
If theres no fideicommisum then your actual value in the 3(2) property will be at number 4
Number 6, starting on 3(3) property

Private company will be in the exam
Can ask you to explain fideicommisum in exam
Page 11
First column on left starting with age

When they ask limited interested in exam, they attach table A above and table B below

If there is no limited interest, number 5 not applicable, then number 4 value will be the actual value
of 3(2) property.
If the farm was sold, cant subtract the 30%
If there were no farming operations, cant subtract 30%

Question paper represents the will for cash
Property 3(3) recorded the policy

Always start with legatees first

Movable property and cash can be fiduciary assets/

Thursday, 22 April 2021 18:12
Page 23, Question 3 (see below)
Things to take note thus far in the question:

• By the end of August, your account must be lodged with the Master. Remember the six months.
• Remember, they will always tell you if you're dealing with a major or minor in the exam. If they don’t say anything, assume they are
majors.
• Remember his marital status is a single person, he's a widower.

Things to take note of thus far in the question:
• The son is the executor.
• You are an agent and are instructed to attend to the administration of the estate. You are registered as VAT vendor. Not the executor.
• There's a will. The deceased passed away testate. The farm, specific asset. Implements (asset), livestock (specific asset) cash (specific
amount). The son is the legatee. The residue of the estate is bequeathed to the daughter, the residuary heir.
• If you come across asset that’s not bequeathed to specific heir, it will fall part of the residue.
• Know the administration expenses in the exam. They won't give it to you in the exam. There's no fiduciary asset in the question. This
doesn't mean you should leave out the fiduciary asset account (FAA). The whole account consists of nine sections. Will still have FAA.
Just record "none" on that section.
• Six months from death to administer an account. So the date for our account to be lodged in terms of this account is 28th August
2019? Not quite. See below.
Normally they give you the date of death. Then you add six months. But be careful, there can sometimes be a later death in th e question
paper. Showing that the executor is busy with the administration of the estate. That's the case with this question. See below .
That date, 18 October 2019. Read the paper carefully. Units sold by the executor means he was in the process of the administration of the
estate.
So we count six months from the 18th October 2019.
If you can get hold of the March exam paper, paper 2 and you compare the liquidation account question with that of Van Eck's, you can see
that the exam questions are based on his questions. So if you can confidently draft a liquidation account off of facts and qu estions by Van
Eck, you should be good for the exam.
Turn to page 30, part 4. Below is the answer to the question above.
Remember:
• Must give the deceased a name and ID number, marital status, date of death and masters reference number.
• Must do the D-V-D. Describe, Valuation and Divestment note.
Let' start with the farm.

If western cape, put IR not JR as in the above answer..
Farm implements and livestock are considered movable property which will deal with later.

Starting with the immovable property
He's the co-owner of the residential property. Only describe his share of the immovable property. That’s why we describe it as "Undivided
half share".
So you can't record R2.6 million as full price because he was co - owner so it's only half. That’s why we divide by 2.
If they give you more than one valuation in the exam, then always work with the largest valuation.
Read the paper carefully. They could give you assets and there will be a liability within the assets somewhere. And when it c omes to the
liabilities, they could give you an asset.
The deceased was only entitled to one half share of the asset, so only liable to pay one half of the liability. Small details you have to
remember.
So when we come to the liabilities, divide the 100 000 (estate agents commission) by 2.
Movable Property
**Remember the date of our account is the 18th Oct 2019.
Turn to page 25, of part 2(1)

The Rental calculation
There will be two rental payments.
1 April: the lessee will pay 120k until the 30 Sep.
1 October: the lessee will pay 120k until the 31 March
⚫ Date of death: 28 Feb 2019. Date of our account is 18 October 2019.

⚫ You will only record the rental payments that you will receive from the date of death of the deceased to the date of our account.
⚫ We won't work out the rental until the end of September 2021. Passed away 28 feb 2019 and the date of our account is 18 october
2019. During that period, rental payments will be received 1 April 2019, 120k. The second payment will be on the 1 October 2019. And
we record only those two rental payments. They are fruits coming from an asset. The deceased had a farm. We will record them as
income. They are fruits coming from a legacy and will be awarded to the legatee in the income and expenditure account.
⚫ You will not calculate the pro rata.
⚫ The amount received by the executor was 120k on the 1st October and so you record the 120k.
Clause F(see the question up above): theres a buy and sell agreement.
A life policy on the life of deceased, taken out by another, category B policies. It was taken out by brother, not a partner, director or
shareholder in the company. But there's a buy and sell agreement. The brother is the owner of the policy even though its on t he life of the
deceased. In terms of that agreement, the brother must pay the executor R1 100 000 for the shares, 100% shares in Smart Dress .
The valuation = 1 000 000.
In the exam, they used Van Eck's values, they only changed the names. Once again, study Van Eck's content to pass this test. For the estate
account you record R1 100 000.
B1 policy. There's a reason there's a buy and sell agreement to acquire the asset of the deceased, 100% shares in the busines s.
In the liquidation account, you record the purchase price. The 1 100 000.
See below:
The son is a cash legatee as well. 1 000 000. You will never award any cash in the liquidation account. Only those assets not sold, or not cash,
will be awarded to the heirs or legatee.
Clause H.
Turn to page 25 - Interest calculation

Turn to page 25 - Interest calculation
You must calculate the interest.

They didn’t give us the period, for how long it was invested.
When it comes to interest on a deposit or investment, they give you the date the investment will mature, interest rate per an num, then you
assume that the investment was made for one year. If they do not give you the period. A fixed period for the investment. Then you assume it
was made for one year.
Then investment made on 1 October 2018 until the 30 Septmeber 2019 (one year)
12/100 times 800 000 = 96000 so on date of maturity the executor recived the capital plus interest, 896 000.
Interest accrued while still alive and after death.
In your LD account, you will record the capital, 800 000, plus the 40 000 interest. Interest earned while still alive. See be low
Page 23 of part 2.1

Clause I
Theres a nominated beneficiary. Second policy. Category A. On his life, taken out by himself. And they pay 850 000 to the dau ghter. A2
policies.
You will not record them in the LD account because the money was not received by the executor. You will only record that whic h the
executor receives.
If its A2 policy, you add it onto the estate duty addendum.

Same with clause G. It’s a B1 policy. Add 1 100 000 in the EDA
But for B1 and B3 policies, you must subtract the premiums paid and the interest.
Clause J

Clause J
Record the 2m. Record the loan as a claim against the estate, the 1mil.
Category A3(2). A and B, you always work on the maturity value or gross value.
It can happen that in the exam, they inform you there was a loan. The deceased took a loan on the policy. Immediately you ide ntify it as an
A3(2) policy. Then they say the loan was settled by the deceased while he was still alive.
If the liability was settled in full by the deceased while the D is still alive, then such policy is no longer a credit cover policy, an A3(2) policy.
Then the policy is an A3(i) policy. Same with a nominated beneficiary. They say benefi predeceased the deceased. Then such po licy is now an
A3(i) policy and not A3(2).
Credit cover policy? And d settled the liability while he was still alive. That policy is no longer a credit cover policy, it s an A3(1) policy.
Page 2,
Page 3

Page 6

Page 6
In the third point, they give you the maturity value and net value. They don’t give the liability which you must calculate.
No amount was payable to the executor. The policy covers the liability. You will still record the policy as a claim in favour of the estate. The
maturity value, and the liability as a claim against the estate.
There will be three of those policies in the exam. Make note of that.
Above is the 2 000 000 policy. We record the maturity value in the liquidation account even though the executor only receives 1 900 000.

The other state liabilities: (see question up above)
There is an asset between the liabilities here. If the mortgage bond was 150 000. Covered in full by a policy, credit cover p olicy.
No amount was paid to the executor. You will still record in your LD account, the policy 150 0000 rand. And the 150 000 to co ver the liability,
the mortgage bond has a claim against the estate. Although you didn’t receive any amount, yo uwill still reflect in divestmen t account
"CASH - estate bank account". When we come back to recapitaluation statement, the mortgage amount will be included in the liabilites. And
you msut substract that liability from the cash.
Page 26
It says the executor collected on the 30 April 2019, R47 562. Capital always in LD account = 45 150. Interest is from 1 June 2018 to 28 Feb
2019 (day he died) = 1425. Goes to LD account. Interest after death. 1 March 2019 - 30 April, will be recorded as income.
Add them all gives you 47 562
65 583 was collected by executor on 30 April 2019. Balance at date of death = 66165. Bank charges are included it says, after death, R690.
That’s expenditure. Interest earned after death.
If you subtract 66 165 minus 690 plus the income 108. = 65 583
Valuation at date of death is 674 870. Then its sold on 18 Oct 2019 for more than the valuation. They you record in your LD a ccount the
selling price and the interest received on the 17 October 2019 as income.
Dividends are recorded as income

Dividends are recorded as income
See answer below:
See beginning of question 3 below:

Lets say they ask you intestate. All the heirs are residiary heirs.
In the exam, those assets not realized into cash or cash assets, record in your cash assets bank account.
For the farm tea leaf, you will have description and valuation, but you wont do a divestment note.
Wont do divestment note for part 3
When you record the last asset in LD that’s not cash or realized to cash, then you will only have one divestment note. Start with item 1, item
3 and item 4. You mention the items to be awarded to the major son or daughter of the D in terms of section 1(1)(b) of the IS A in equal
shares.
This is how your table must look like in the exam. Every administration expense needs a value. Bank charges you make up. Post age and
petties, the maximum is 260.

petties, the maximum is 260.
Caclulate the 3.5% on the total assets. Then he is preapred to pay you two thirds of the 332 153.50 which is 221 435.67 and t he VATis 33
215.35 and in total he will pay you 254 651.02.
But the son is the executor. Subtract the amount he is preapred to pay you from the 3.5% and the son will receive the balance which is 77
502.48.
Add the claims against the estate to calculate your total liabilites.
In question 1, the total liabilities was given and then we calculated the total administration expenses. In this question, th ey goive us the total,
and then we claciate the claims against the estate to calculate the liabilties.
The mortgage was 420k at date of death. He is liable to pay half of the liability. Half of the asset, so half of the liabilit y.
The loan policy is 100k.
Total liability is 895 000.
Below is the estate duty addendum

Number 5 is not applicable
Then you must add the 3(3) property.
When you start with number 6, record those you subtracted under number 4 immediately. The 2 000 000 to the estate. The bank 1 50 000.
the policy to the daughter 850 000 and then to the brother 1 100 000 and you subtract the premiums paid, 10 560 100.
When estate duty is payable, we must include the apportionment of estate duty
You record the amount the estate is liable to pay
You subtract 895 000 and the estate duty payable to calculate the amount for distribution

You calculate the amount the estate is liable to pay
Amount for XYZ bank is not included in apportionment
1346789: you can expect in exam

1 always
2 and 5 they can ask
3 and 4 is popular.
6,7.8,9 always applicable
Recapitulation statement
Cash and assets reduced to cash.

Record "CERTIFICATE BY EXECUTOR" for free marks.

Thursday, 29 April 2021 17:02
Single persons estate in the liquidation account.

The survivor mus taccept the stimulation in the joint will or mutual will or
communal will.
Must indicate that the survivor accepts the provisions in the joint will. If they
accept, we call the survivor adience.
Accept that the survivors share, still alive, is to be bequeathed a trust, a child or
a company.
There must be a limited interest created for the surivor. Ex: a usufruct. Or if a
trust, a beneficiary.
Record the deceaseds share first in the LD account and thereafter the share of
the survivor. That’s means the survivor accepts the stipulation in the will, the

the survivor. That’s means the survivor accepts the stipulation in the will, the
survivor will lose ownership in the asset. But there must be a limiited interest for
the survivor over the survivors and deceaseds share.
100% bequeathed to trust, child or company but the survivor must have a
limited interest over that 100%.
Two single persons they can master the estate.
The survivor will lose ownership over his share and must therefore adiate. But
there must be a limited interest created for the suvivor. Means the deceased and
the survivor.
Joint, mutual or communal estate.

Each spouse is entitled to one half. Each spouse liable to pay one half of the
liabilities except the funeral expenses. Deceased estates must pay full amount
for his funeral expense.
Turn to pg 105 of lead manual

Massing is in terms of section 37 of the AEA.
The Esate Duty Act does not make provision for massing. Remember with ED you
start with property of the deceased.
Pg 248, cert of adiation/repudiation

They can ask you to draft either one of those certificates for six marks.

Theres a joint will and they bequeathe that the deceaseds share and suvivors
share in the immovable property to be massed

Van Eck Revision Class.
Saturday, 26 June 2021 08:52
Page 2 of notes
Para 1.4.1 Keep it simple for clauses.

There will always be a senior partner. Can appoint anyone in the firm to administer of the estate. 1.4.3 and 1.4.6 combine them.
Security 1.4.5: the testator makes it clear in the will that it is not necessary for the executor to provide security for the administration of the estate.
In March exam, legacies are heirs that will inherit specific assets/specific assets bequeathed to specific heirs. Mention them first before those in 1.4.2
1.4.10: Residiary heirs. Will has legatees and residiary heirs. Always appoint a residiary heir. Will be entitled the assets not bequeathed to specific heirs. But you cant ito ISA, there cant be
legatees. Theres only residiary heirs for that Act. They are appointed ito the Wills Act, legatees that is. There can be resi diary heirs.
1.4.12 and 1.4.13 will be applicable if there are limited interests.
You bequeathe to your children or wife for example, assets. When they get married ICOP, you don’t want the inheritance that heir will receive to form part of a marriage in ICOP. So there
must be a stipulation in your will that the inheritance will not form part of the marriage in ICOP. Marriage ICOP with accrual? Then you don’t want inheritance to form part of the accrual
calculation: there must be a stipulation in your will saying so.
At bottom of page 2: the testator or who he appoints, can sign the first page or make a mark. Testator can sign anywhere on the first page ito section2(1)A. If T is illiterate, he can make
mark or appoint someone to sign.
Appointment of Guardians where minor is involved.

Must appoint guardian.
Pay inheritance of minor over to guardian or place in testamentary trust. Page 35
Stay away from guardian fund.
1.4.31
Will must be signed in the presence of two witnesses. Must be 14 and older. And they sign anywhere. Not necessary for them to sign first page. Last page they sign anywhere.
The testator signs in their presence. T must be 16 and older and mental capacity to appreciate what he's doing.
Make provision for a commissioner of oaths certificate.
Page 3 at the bottom. T signs the will. No need to make provision for the certification of the will
Schedule 1 certificate applicable when its an entire will.

Schedule 2 cert is applicable when theres an amendment to the will.
You can amend a will in two ways: on the original will and signed by two witnesses OR by way of a codicil. (about time they a sk about this in the exam) See page 5 on notes.
Signed by the T in the presence of two witnesses.
Page 6: section 2B of Wills Act is popular in the exam.

The annulment of a marriage or divorce. Wills executed before divorce or annulment of marriage.
The ex souse is nominated as heir. Now theyre divorced. If he doesn’t revoke his will after the divorce or anulment, the following will apply:
Passes away within 3 months of divorce or A: in this case, it was within 1 month. The inheritance will be inherited ito the I SA because T is regarded as pre-deceased.
Passes away after 3 months after death or anulment: have 3 months to revoke will. Still get people who got divorced 10 years ago.
Note scenario on page 6

Go on to page 7
You can also renounce inheritance ito ISA and same rule is applicable. Want to renounce in favour of descendants but there is a surviving spouse, you cant. It will go to the surviving
spouse.
Second scenario on page 6

No surviving spouse. Pre-deceased the deceased. 2
Lots of theory questions from the Wills Act.
Page 8 of notes.
Notes pages 8-15, use his Notes and not the LEAD manual.
Part 2(1) of his notes. On page 2

Can be asked to draft L&D account based on will to be administered or ito intestate succession.
Can ask you what docs should be sent to the Master when you're appointed to administer the estate.
Liquidation and Distribution account

Must determine the marital status of the deceased.
Single person/divorced/widow/widower.
If theres only one estate, then will administer the entire estate. All the assets and liabilities.
Marriage OCOP. With or without accrual.

Must register a ANC
But if marriage OCOP: There are 2 estates in the marriage. Each spouse is entitled to his or her own estate.
Page 4 notes. Marriage ICOP: Did not register an ANC. Only 1 estate. Joint or mutual estate. Must administer the entire estat e ICOP.
Each spouse married ICOP will be entitled 1/2 of the assets by virtue of the marriage. And the liabilities, each spouse is liable to pay 1/2 of the liabilities except for his or her own funeral
expenses. When one dies, the other is now single. Theres no marriage. Will not have an estate. Therefore you administer the entire estate that way at the end, the surviving spouse will
receive an estate. Because one spouse wont be there when the other dies so that’s why everyones responsible for their funeral expenses.
Can ask you customary law and civil unions. If they tell you they were married ito customary law or civil union and there was an agreement before the marriage then you will administer the
estate ito OCOP. No agreement? Then will be based on ICOP, theres only one estate. (they'll tell you in exam whether they hav e entered into agreement. If they don’t
Must remember that there are 9 subsections or accounts in the L&D. Page 4
You are appointed as an executor, section 35 of Administration of Estates Act, 6 months from appointment as executor is the time you will have to administer the estate. (This is a possible
theory question)
Name the nine subsections: this is a possible oral exam question.
Before starting with the L and D account, establish the following:

Date of death. You add 6 months to get an idea of when you must lodge your account. Read paper carefully. It can happen that they give you i nformation later on in the question, that the
executor was still busy with the administration of the estate, and that’s after the date you calculated for your account to b e lodged. Then you work on that later date.
Testate/ Intestate: check if theres a will.
Who is the executor /agent? Registered for VAT or not?: is it you? Make sure they tell you if you are registered as VAT vendor. Must charge vat on executors remuneration. Agent. Lets say
they appoint surviving spouse as executor and you receive instructions from executor to administer the estate. You will not be the executor but the agent.

they appoint surviving spouse as executor and you receive instructions from executor to administer the estate. You will not be the executor but the agent.
Marital status of the deceased
If theres a willl, identify the legatees and legacies and
Identify the residue and the residuary heirs. To identify the residue, the legacies are specific assets to specific heirs. If you come across an asset that is not bequeath ed to a specific heir,
then such asset will form part of the residue. And will be awarded to the residuary heirs.
Page 5 (still in part 2)

Question 1
You are executor and you are a VAT vendor. Died on 31 Jan 2019. Add six months. Give you 31 July 2019. Have until then to lodge L&D account.
Theres an ANC, they were married OCOP. Must still determine if it was with or without accrual.
Must know the descriptions of assets (might not give you in the paper so know them)
2hour paper. Start with the theory, those you can answer.
L&D part is for 60 marks. Need at least 75 mins. Rather start with the theory.
By 10 mins to 15:00. start with the L&D account.
Record assets the deceased had at date of death.

1. Must know description for immovable property.
Valuation will be voucher number 1
Divestment note: when you indicate to who you will award the asset or what to do with the asset
2. Then movable property

D-V-Di.N
Every asset must have a D-V-D
3. Claims in favour of estates

D-V-D
Record all three above under assets
4. Administration expenses
5. Claims against estate
Total liabilities (4 & 5)
6. Estate Duty payable by Estate. Here you do the Estate Duty Addendum. Stop with the L&D account. If solvent estate, assets will always be more than liabilities
Part 4, page 2 and Part 2(1), page 5
SEND SHANNA THE NOTES
Three marks for description of immovable property.

Bonafide farming operations: when we come to the EDA we will subtract 30% of the valuation recorded in the liquidation accoun t.
Page 7 part 2(1) of notes.

Can be asked five mark question to explain what a fideicommisum is.
Page 10: part 2(1) Immovable Property Descriptions

Must know the four descriptors for a farm.
How do you squeeze a farm into a sale?

Cant start description of farm with "ERF356". That’s only in a suburb.
Done with immovable, now we do movable.
Back to page 5
Model, year of the model, registration number: for description of motor vehicle
Valuation is 280 000
The legacy is the motor vehicle. The legatees:
The shares. 1250 shares in consolidated mining ltd.

An asset not mentioned on A, B, C,D means those shares forms part of the residue and you award it to james the residuary heir .
That’s how you identify the residue.
To identify income, ask yourself, of these fruits coming from an asset the deceased had at date of death, then the fruits will be income.
That's how you identify income.
And the dividends will not be recorded in the liquidation account.
750 shares in a private company. Received valuation from auditor. SARS accepts valuation. Record the selling price in the li quidation account. Cant record the valuation at date of death
because during the course of the administration, the shares were sold.
Asset sold for cash cant be recorded as income in liquidation account.

Assets in liquidation account are assets AT DATE OF DEATH. You get valuations at date of death. If the assets was sold during the course of the administration and realized as cash, that
doesn’t make it another heading.
Shares are under movable property. The minute he passed away they became movable property. You deposit 60 000 in estate bank account
Know when it is income and know when it is not recorded.

Liquidation account you record assets at date of death and that’s why income from asset is not recorded because its fruits coming from the assets during the course of the administration.
Dividends are fruits coming from shares. He didn’t have those dividends at date of death but were declared during the course of administration. So the R5 per share is income. Sof form part
of residue.
Shares not sold at date of death are recorded in the account and the valuation amount is recorded. If sales are sold, during the course of the administration, the dividends are fruits. They
are income.
Shares not sold = assets and the valuation is reflected.
Any cash must first be deposited in the estate bank account for which you will pay the liabilities first. There can be a cash surplus or shortfall. NB: you will never award any cash in a

Any cash must first be deposited in the estate bank account for which you will pay the liabilities first. There can be a cash surplus or shortfall. NB: you will never award any cash in a
divestment note in the liquidation account. Those assets not realized into cash, like number 1,2,3,4: go to legatees. All oth ers are cash go to the estate bank account
40% shareholding in Nordic (Pty) Ltd

1 250 000 is the selling price to John Clegg
Was sold during the course of the administration. He passed away when he had the 40% of the shares.
So when you come across the shareholders' agreement, and realize that the 40% share is sold to John Clegg.
SHARES ARE POPULAR IN THE EXAM
Life policies - Part 2(2)

A. LIFE INSURANCE POLICIES ON LIFE OF DECEASED TAKEN OUT BY DECEASED
a. Four of them.
B. LIFE INSURANCE POLICIES ON LIFE OF DECEASED TAKEN OUT BY ANOTHER
The minute the deceased passed away, the policy has maturity value, no longer surrender value. AKA gross value or death value .
You will never work on the surrender value but the maturity value!
B1 and B2 are for the same reason but B1 is taken out by non-partner, shareholder and director but B2 is taken out by partner, shareholder or director.
B3 no reason.
B4: deceased is key person in the business. The day he passes, they lose income because he is a key person. The business or employer took out a policy on the life of the deceased to cover
their potential loss. The policy must cover a liability.
Page 15: Overview of Liabilities

Normally they don’t give you administration expenses so you should know them.
A. Section 29 advertisement: soon as you receive yoru letters of executorship, you advertise estate of the deceased in the government gazette and local newspaper.
You give creditors at least 30 days to lodge their claims against the estate. There will be a second advertisement ito sectio n 35
Section 35 advertisement also in GG and local newspaper and the cost for the GG must be correct R37.
Once you account is approved by the Master, you advertise the estate again and anyone with objection against approved estate, can lodge their complaints with the Master within 21 days
of publication. So this publication is after the approval of your account. So provision must be made for section 35 advertise ment.
The part marked with an X, you make up.
R260 for Postage and Petties (this amount must be correct)
Valuation costs:
You receive valuation from appraiser, stockbroker and auditor. This was part of the administration of estate. You will make up the valuation costs.
If you were not exempted from providing security, then the security bond, you make up amount and it will form part of adminis tration expense
If estate agent appointed to sell immovable property, or auctioneer sold the house, or stockbroker sold shares in public comp any, they all realised as asset to cash. You will make up these
amounts, the costs of realisation.
Only when gross assets value is less than 3.6 million, then you will calculate the master fee. But if its more, then you add 700 000 for Masters fees.
Executor's remuneration 3.5% of total gross value of assts (amount must be correct)
If reg as VAT vendor then you charge VAT thereon
Then you have total administration expenses.
Claims against the estate

The funeral expenses. Have a voucher for it. R26 000
And ABC Bank: overdraft R17 000
Masters Fee pg 17
For every 100 000, theres R200
If the value of estate is 250 000 or less (section 18(3) estate), such estate wont be administered formally. The Master will appoint a representative. Which means the masters fee wont be
paid. There wont be advertisements. But as soon as that masters representatives, realises that estate is worth more than 250 000 then the master must be informed and it will be formally
administered.
That’s why we start at 250 001 - 400 000
Page 130 LEAD manual

Rejected Claims
Administration Fee
Claims in favour of the estate.

Loan by the deceased: in favour of the estate
Loan to the deceased is a claim against the estate
Page 109: LEAD Manual Para 2.12

Par 2.11: Draft a letter to the master requesting an extension (possible theory question) for 6 marks
Accrual claim by deceased is a claim in favour of the estate. Accrual claim against the estate of the deceased is a claim ag ainst the estate
In exam, they might say the accrual claim was by the deceased against the survivor. Was paid on 1st May. He passed away 31 Ja nuary. The survivor paid the accrual claim to the executor on
the 1st May. Or the other way around. The survivor has a claim against the deceased. The executor pays the accrual claim to t he survivor. It’s a trick. Accrual claims can never be recorded
as income or expense in your income and expenditure account
They will always be paid after death, but the day they got married, can only calculate on the day of the first dying
Therefore accrualc laims can never be recorded in your income and expenditure account. Doesn’t matter when it will be paid.
Will be recorded in liquidation account as claim against the estate. If it was a claim by the deceased then it would be an as set you record in the liquidation account.
Income and expenditure account: its for fruits coming from assets of the deceased at the time of his death.
The calculation and recording of the accrual

Van Eck Revision Class 2
Sunday, 27 June 2021 09:05
Started at 09:05
Estate Duty Addendum
Must distinguish between shares in pvt and public company. Public you get valuaion from stock
broker. From private c0opany from auditors.
How should public shares be recorded in liquidation account. Bottom of liquidation account.
Shares in public company re
Page, Part 3 notes

RECIPE
stART WITH gross value of assets
Following asset not recorded in liquidation account.
But it was property that the deceased enjoy.
Number 3 for adjustments. Only two assets in liquidation account that you can adjust
30% I will subtract the estate duty addendum
Only shares in private company. Record selling acocunt in liquidation account but use the valuation
in the EDA.
Number 4: claims in favour of the estate.
Number 5: page 7 in part 2(1). Go there first

George created the fideicommissum. Bequeathed to his son who is now deceased on the condition
that if the heir falls away, goes to the son, fideicommissum heir. The Fh was born in 2 Jan 1982
What will the FH enjoy?
Turn to page 11.

James at date of age of the deceased, 37 years old. So james was 37 when the FH passed away.
Add one year to that age. 38. that means we must work our own FH will be on his first birthday after
date of death of the FH. He was 37 when the FH passed away. Then you add one year. And hell be
38. James major son will be 38 on his first birthday after the death of the FH.
Lead manual page 159 (2020 version); page 250 (2021 version)
Tables for calculating the value.
Table A
On left column
Lets say you're 21. See age 21 on the table.

Then theres a second column, expectation of life for males and females. Next column, present value
of R1 per annum for life.
You work on age, then on expectation of life,
So we're working out 38 yrs for James.

Expectation of life is 31.28. Meaning its expected to live another 31.28 years.
Must calculate the value of that 31.28
Go to next column.
8.09 for males. Multiply the 635 000 by 8.09274.
If you're dealing with a limited interest, don’t use Table A
Page 5 of Part 4

Page 5 of Part 4
30% is applicable because its bona fide farming.
AFTER FIRST BREAK

Page 6 - Calculate gross value of the estate
Work to the net value
7. Less: allowable deductions in terms of section
Where do you get the funeral expenses? You recorded it in the liquidation account as a claim against
the estate. Its deductible ito section 4(a)
Subtracted on page 6 part 4
Liabilities:
CASH RECAPITULATION STATEMENT

Go to liquidation account and where you recorded cash for the estate bank account
Determine cash position of estate
L&D
SEND EMAIL TO VAN ECK AND COPY FRANCOIS OR THE OTHER WAY IF WE HAVE QUESTIONS
Part 2(1) Question 2

ESTATE DUTY ADDENDUM, ACCRUAL CLAIM BY SURVIVING SPOUSE
5 650 000: property ito section 3(2) as per liquidation account
See page 22 of part2(1) on how he got that amount
See page 11 Part 4

Before you add property deemed, the subtotal you record as the actual value of your section 3(2)
property. Once calculated, you add the property deemed, 1 840 000
The beneficiary of policy is in bracket
Part 7, accrual claim by surviving spouse ito section 4(lA) can be deducted even if you recorded it in
the liquidation account. It cant be deducted ito section 4(q)
Page 5 of Part 3 - Recipe
Apportionment of Estate Duty when estate duty is payable
The estate is not liable to pay the entire 266 000. Certain beneficiaries are liable to contribute
towards the estate duty payable.
Beneficiaries who receive benefits under number 5 and 6 of your recipe, that are not deducitble ito
section 4, are liable to contribute towards estate duty payable.
Number 5 limited interest, Number 6 property deemed, those you couldn’t subtract, they are liab
le to contribuet towards estate duty payable
Net value of the benefit over the net value of the estate times the estate duty payable. That’s the
formula.
When we did the estate duty payable, theres only a benefit to one natural person which is the
surviving spouse. The others that wont contribute are those deductibles ito 4H
Any benefits to organization or surviving spouse, if its deducitble ito section4, they will never
contribute towards estate duty
Those who received under number 5 and 6 benefits, you cant deduct ito section 4

Those who received under number 5 and 6 benefits, you cant deduct ito section 4
Estate for Ivy, her benefit is
Deputy sheriff- documents are with the deputy sheriff. Not sure if its been served
076 124 6912
Applied for date of unopposed motion

Gave november which is too far
Might be mistake,
Parties have settled, have agr, just need order for court.
Need to be allocated earlier date
Phone number > call them for details on
Cant wait till november. fyou

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Wills and Estates

Monday, 19 April 2021 16:43

Presented by Johann van Eck and Francois de Wet.

So questions on these four Acts will be in the exam

Part 1: Wills Act

Page 3 of LEAD manual: the Wills Act No 7 of 1953

Wills and Estates Page 1

If testator signs by making of a mark, or someone

CoO also asked as theory question in past exam.

Wills Act and Interstate Succession Act

Wills and Estates Page 2

1.4.1 Know the T's ID number and current address

1.4.2 Revocation clause. Page 39. "I revoke all

1.4.3 Appointment of executor and trustee. Page

Professional fee: not on the screen. Not necessary

1.4.5 Security: If intestate, the master will ask the

Page 42. 1.4.9 Legacies: In the March exam, they

Wills and Estates Page 3

Please note, only in a will can you appoint legatees

1.4.11 Simultaneous death: all depends on the

1.4.12 Limited interest (this is popular)

I bequeathe to A on the subject that A's death, will

1.4.13 Habitatio and Usus

1.4.14 There is not a clause in your manual on

Wills and Estates Page 4

Signature: testator/other person/ commissioner of

Wills and Estates Page 5

1.4.19 Testamentary Trust

Page 61. They can tell you in exam that theres a

1.4.21 Attestation clause (asked in March exam)

Wills and Estates Page 6

Page 8, para 1.2.4

Page 11: following cases adopted strict approach

Bottom of page 12: matter settled in SCA case.

Page 14: electronic wills. Mcdonald v the Master

Page 17 - Undue influence.

Page 18: section 2(3) to accept a will. Draft it and

Page 18: Amendments

Wills and Estates Page 7

Example of cert by CoO

Cert when theres an amendment

Above is an example of a codicil. Must be signed

Wills and Estates Page 8

Page 19: Power of the HC to declare a will to be

Oral revocations are not recognized by the

Popular in exam (see below)

Can be given scenario of this in exam. Answer for

Effect of divorce or annulment on will

You have descendants, and now you wanna

Wills and Estates Page 9

Nasciturus fiction asked in November exam

Where a witness is a beneficiary, must make

Ito common law, following are excluded as

Page 29: Drafting of wills

You execute a will. A single will, one persons will or

1.3.2 Vesting (can ask you to explain vesting)

Agricultural immovable property. A farm. If you

Proceeds for pension funds (was in past papers)

Wills and Estates Page 10

Page 32, bullet 2

Page 34, the fideicommissum

Page 8-15: study Van Ecks material for this.

Single person, ICOP, OCOP: must be able to draft

Missed some stuff here while talking to Lisa