Nov 98 Que

LEGAL PRACTITIONER'S QUALIFYING EXAMINATION
ADMINISTRATION OF ESTATES PAPER 2
MARKS 100 TIME 90 MINUTES NOVEMBER

1998
QUESTION 1 [35]
a/ Your client dies intestate and the family wishes you to be executor.
List the documents that you will lodge with the Master to report the
estate and to obtain your appointment. (7)
b/ Your client also owned a sectional title flat in Cape Town.
How will you proceed to have your appointment recognised in South

Africa and what documents will you obtain and/or lodge with the
Master Cape Town. (9)
c/ List the steps to be taken in the administration of an estate from

the reporting of the estate until the records can be destroyed. State
the time limit laid down by the Act for the compliance with certain
provisions of the Act. (19)
QUESTION 2 [25]
a/ The estate of a deceased is found to be insolvent. What steps must be

taken by the executor and the Master in:
i/ an estate of less than $30 000.00
ii/ an estate of more than $30 000.00. (11)
b/ Under what circumstances can the provisions of the following sections

of the Estates Act be applied:
i/ section 18(3)
ii/ section 21
iii/ section 25. (6)
c/ Draft the notice in terms of section 35( ) in respect of a person who

was resident in Witvlei. (8)
QUESTION 3 [40]
a/ The deceased leaves assets to the value of N$1 400 000.00 comprising
inter alia the following:
i/ Dwelling house awarded to the heirs at appraised value of

$500 000.
ii/ Shares listed on the stock exchange which are sold for $400
000.
iii/ Shares in a private company valued at $300 000 awarded to the
heirs.
iv/ A motor car, furniture and paintings valued at $200 000 awarded
to the heirs.
Specify ALL the administration expenses amounting to N$50 000.00.

Invent your own facts and figures where necessary. (18)
b/ The heirs in equal shares are;
i/ The surviving spouse married out of community of property,
ii/ The deceasede's daughter married out of community of property.
iii/ The deceased's minor son.
The heirs agreed to redistribute the estate so that the survivor will
receive the assets and pay into the estate sufficient funds so that
the children will receive cash.
Draw the distribution account.

ANSWERS
1a/ i death notice

ii inventory
iii nomination by interested parties
iv acceptance of trust in duplicate
v bond of security for full value of the assets (7)
1b/ i the estate must also be reported to the Master Cape Town
ii documents to be lodged are;
d/n
inventory of SA assets
2 x copies of l/e certified for use outside Namibia
bond of security for full value of SA assets. (9)
Power of attorney
1c i report estate within 14 days of death

ii open bank a/c on receipt of l/e
iii advertise for creditors
iv determine solvency of estate
v decide on mode of divestment in consultation with heirs
vi lodge account within 6 months after appopintment
vii advertise account
viii pay creditors and heirs within 2 months after a/c lay for
inspection
ix transfer fixed property
x lodge final requirements
xi obtain filing notice
xii apply fot release
xiii destroy records after 2 years after release.
2a Under $30 000

i report insolvency to Master
ii Master will give directions
iii Administer estate in terms of directions
Over $30 000

i report to Master
ii Master will confirm estate over 30 000
iii advise all creditors of insolvency and ask them to decide
whether estate must be surrendered or administered i t o sec 34
iv If creditors in number and value requsts surrender, executor
must sequestrate estate
v If not so directed estate must be administered i t o sec 34.
2b i estated of deceased persond that do not exceed $15 000

ii foreign estates where the appointment has been granted in a
State as defined in section 20
iii a foreign estate where only assets consist of movable property.
2c Notice is hereby given that the First and Final Liquidation and
Distribution Account in the estate of the late ............... who
died on ....... will lie for inspection at the Master of the High
Court Windhoek and the magistrate Gobabis for 21 days from date
hereof
................. Executor
3.
Notice to creditors
government Gazette 10.00*
Advertiser 70.00
Advertisement of account
Government Gazette 10.00*
advertiser
70.00 Provision for Bank 90.00

charges
Master's Fees (maximum) 600.00*
Executor's remuneration 35 000.00*

2 1/2% on 1 400 000.00
Sales Tax 10% on 35 3 500.00*

000
J. Smith Sworn Appraiser 800.00
Jones and Co Conveyancing 6 190.00

costs
def Brokers Commission on

sale of shares 2 000.00
GHI Inc Auditor's valuation 1 500.00

of shares in private
co.
V Swart Valuation of 300.00

movables 50 000.00
* Exact figures to be given.
QUESTION 1.5
DISTRIBUTION ACCOUNT
Balance for distribution 1 350 000.00
To Mary Marcus surviving spouse

1/3 residue in terms of will
and redistribution agreement 450 000.00
Award consists of.

Fixed property 500 000.00
shares 300 000.00
movables 200 000.00
1 000 000.00
less cash contribution 550 000,00
450 000.00
To Joan Smith married out of
community of property. Marital
power excluded
1/3 in terms of will 450 000.00
Award consists of cash
To Peter Marcus Minor

born ........ ID No .............
1/3 in terms of will 450 000.00
Award consists of cash

___________ __________
1 350 000.00 1 350 000.00
_____________ ____________
_______________________________________________________________________

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LEGAL PRACTITIONER'S QUALIFYING EXAMINATION

ADMINISTRATION OF ESTATES PAPER 2

MARKS 100 TIME 90 MINUTES NOVEMBER

b/ Your client also owned a sectional title flat in Cape Town.

How will you proceed to have your appointment recognised in South

c/ List the steps to be taken in the administration of an estate from

a/ The estate of a deceased is found to be insolvent. What steps must be

i/ an estate of less than $30 000.00

ii/ an estate of more than $30 000.00. (11)

b/ Under what circumstances can the provisions of the following sections

iii/ section 25. (6)

c/ Draft the notice in terms of section 35( ) in respect of a person who

i/ Dwelling house awarded to the heirs at appraised value of

Specify ALL the administration expenses amounting to N$50 000.00.

b/ The heirs in equal shares are;

i/ The surviving spouse married out of community of property,

ii/ The deceasede's daughter married out of community of property.

iii/ The deceased's minor son.

Draw the distribution account.

1a/ i death notice

1c i report estate within 14 days of death

2a Under $30 000

Over $30 000

2b i estated of deceased persond that do not exceed $15 000

70.00 Provision for Bank 90.00

Master's Fees (maximum) 600.00*

Executor's remuneration 35 000.00*

Sales Tax 10% on 35 3 500.00*

J. Smith Sworn Appraiser 800.00

Jones and Co Conveyancing 6 190.00

def Brokers Commission on

GHI Inc Auditor's valuation 1 500.00

V Swart Valuation of 300.00

* Exact figures to be given.

Balance for distribution 1 350 000.00

To Mary Marcus surviving spouse

Award consists of.

Award consists of cash

To Peter Marcus Minor

Award consists of cash

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