LEGAL PRACTITIONER'S EXAMINATION.

MARCH 2004 TIME 90 MINUTES MARKS 100

PAPER 2 ESTATES.
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QUESTION 1. [13]

In Namibia estates of deceased persons are administered in terms of different statutes.

1.1 In terms of which statutes are these estates administered? (3)
1.2 Which officials supervise these estates? (3)
1.3 Which estates are administered by each of these officials? (7)

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QUESTION 2. [28]

In terms of Act 66 of 1965,

1.1 Which estates need not be reported to the Master of the High Court? (2)
1.2 Who must report an estate to the Master? (3)
1.3 Which executors are obliged to furnish security to the Master before being appointd? (4)
1.4 The Master has the discretion to insist on security in certain instances where the executor is exempted.
Name these instances? (2)
1.5 When must an executor lodge a section 27 inventory? (3)
1.6 What must be stated in an application for extension for lodgement of an estate account? (5)
1.7 What must be stated in the distribution account where the award is to:
1.7.1 A minor?
1.7.2 A woman married in community of property?
1.7.3 A woman married out of community of property? (9)
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QUESTION 3 [59]

John Smith, who died on 13 July 2003, left a will dated 14 March 1999, which reads as follows:

"I appoint my wife Sophia as Executor.

As a legacy I bequeath to my illegitimate son Thomas Webber the sum of $5 000.00.
I bequeath the residue of my estate in equal shares to my three children."

The deceased left the following family:

1/ his ex-wife Sophia Smith who he divorced on 10 June 2003

2/ His daughter Mary Peters married out of community of property,
3/ His daughter Sally Smythe married in community of property,
4/ His grand son, William Smith, son of Gavin Smith who died simultaneously with the deceased.
5/ Illegitimate son Thomas Webber born 14 October 1984

The assets of the estate consisted of;

1/ Fixed property valued at $600 000

2/ Movables valued at 100 000
3/ Old Mutual shares 40 000
4/ Cash in the bank 10 000
 Liabilities/
The liabilities are:

1/ Usual administration costs and other debts totaling $100 000

2/ Claim by the guardian of Thomas for maintenance
calculated at $500 per month for 20 months 10 000

Using the above details and your own facts where necessary:

1.1/ The daughter Mary Peters does not want Sophie to be executor and wants to be appointed herself. Advise
her in this regard. (5)

1.2/ List the documents needed for an executor testamentary to be appointed. (6)

1.3/ For sentimental reasons Sophia wishes to take over the assets in terms of section 38 of the Act.
Advise her of her rights. (4)

1.4/ The heirs do not wish to sell the assets. Draw up a redistribution agreement. For the purpose of this
question each heir should inherit the same amount that they would have inherited if the assets were sold at
valuation. (10)

1.5/ Draw up the liabilities section and the Distribution account. (30)

1.6/ The mother of Thomas does not want the amounts due to him to be paid into the Guardians Fund. She is
prepared to give security for these amounts. Advise her of her rights. (4)