MARCH 2005 ANSWERS

QUESTION !
1.1 The estate of the deceased is responsible for the maintenance of all his minor children. If only the claim
of Charles is allowed then there will not be sufficient to maintain the other minors. Mary should
therefore also put in a claim on behalf of Mabel and Benny. As there is insufficient to pay all
maintenance claims, they will all abate pro-rata.

1.2 (a) Simple arithmetic i.e. $X per month x Y months.

(b) Using tables to determine how much must be invested to provide for $X per month for Y months.
(c) Get an actuary to calculate amount of claim. He will not only take into consideration the minor’s
present needs but also provide for inflation and minor’s increased needs as he gets older.

QUESTION 2

First and Final Liquidation and Distribution Account in the estate of the late Peter Smith (ID ........)of Windhoek,
and of his surviving spouse Anne Smith (ID .........) to whom he was married in community of property
Date of death 1 June 2004 Master's Ref No 195/04

LIQUIDATION ACCOUNT.

ASSETS.
1 Certain piece of land being erf 1234 Windhoek held under deed of
transfer no 234/1956 as per sworn appraisement
1 450 000.00
Awarded and to be transferred to the heirs as per the distribution
account.

2 Toyota sedan N98760W as per appraisement 1 80 000.00

3 Household furniture as per valuation 1 40 000.00

Awarded to the heirs as per the distribution account

4 Proceeds fixed deposit ……………… 2 130 000.00

5 Proceeds current a/c ………………… 3 120 000.00

6 Proceeds Policy no 56789 Sanlam 4 130 000.00

7 Surrender value of Policy no 13653 Old Mutual awarded to the5 3 000.00

heirs as per distribution account

----------
968 000.00
==========

LIABILITIES.

Administration costs:

1 Advertisement to creditors
……………………. 6 …….
Government Gazette dated.14/8/95 20.00

2 Provision for advertisement of the account

……………………… …….
Government Gazette 20.00

3 Bank charges …….

4 ………. cost of valuation of fixed property and movables 7 ………

5 …………….Transfer costs 8 …………..

6 Executor's remuneration
3 1/2% of 953 000.00 33 880.00

Sales tax 15% of 23825.00 5082.00

7 Masters fee 2 904.00

Claims against the estate

8 ………. funeral expenses 9 4 000.00

9 ……………………………….. 10 …………..

5 Balance for distribution 904 000.00

----------
968 000.00
==========

RECAPITULATION STATEMENT

Total cash 395.000.00

Liabilities 64 000.00
surplus awarded to heirs 331 000.00
---------- ----------
380 000.00 380 000.00
========== ==========

DISTRIBUTION ACCOUNT.

Balance for distribution 904 000.00

To Anne Smith, surviving spouse,

1/2 by virtue of the marriage
in community of property 452 000.00

Plus 1/2 funeral expenses 2.000.00

1/6 in terms of the laws of intestate

succession 150 000.00

Award consists of:

2/3 fixed property 300 000.00
2/3 movables 80 000.00
2/3 policy 2 000.00
cash 222 000.00
----------
604 000.00
==========

To Joan Smith Minor Born ……… ID No …….

1/6 in terms of the laws of intestate
succession 150 000.00
3 to Mary Adams (born Smith) married in
community of property to Paul Adams.
1/6 in terms of the laws of intestate
succession. 150 000.00

Award to 2 and 3 above

consists of:
1/6 fixed property 75 000.00
1/6 movables 2 000.00
1/6 policy 500.00
cash 72 500.00
----------
150 000.00
========== ---------- ----------
904 000.00 904 000.00
========== ==========

INCOME AND EXPENDITURE ACCOUNT Nil

FIDUCIARY ASSET ACCOUNT Nil

CERTIFICATE

I the undersigned certify that the above account is true and correct and that all assets of the deceased have been
accounted for and that no income was collected.

Signed at Windhoek this ..... day of ..........2005

(signed) ..........
Executor

[Discretionary mark for neatness, layout and overall impression. (5)]

QUESTION 3
There is a presumption that the testator intended A to receive the farm free from the burden thereon.

A will receive the farm free from the bond (unless a contrary intention can be gathered from the will ) The bond
will have to be repaid from funds forming part of the residue of the estate.

The bond is therefore effectively repaid out of B's share of the estate.

QUESTION 4
3.1 a Masters fee nil ex comm. 1577.66. Vat 236.65
b 2169 25310.57 3796.56
c 2997 34 889.50 5 248.43
3.2 Personal 2103.73 29575 4436.25
Fiduciary 896.27 12600 1890.00