Aug 03
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André Le RouxAug 03
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André Le RouxLEGAL PRACTITIONER'S EXAMINATION.
MARCH 20003 TIME 90 MINUTES MARKS 100
Use your own facts where necessary.
QUESTION 1 [45]
Joe Smith died intestate and left his wife Sara, married out of community of property, his minor daughter Mabel
born from his present marriage as well as Charles, a minor son born from his previous marriage with Peggy.
His assets consist of A, Fixed property valued at $600 000
B Movables $100 000 , and
C, Cash and proceeds of assets of $200 000
The liabilities are A, Administration costs of $50 000
B, Funeral expenses $10 000
C, Claim by Peggy Smith for $30 000 being maintenance for Charles.
1.1 Discuss briefly the merits of the maintenance claim, (9)
1.2 Peggy offered to give security for the maintenance claim. Discuss. (5)
1.3 As it is not practical to transfer the assets to the heirs, a redistribution agreement was entered into.
Draw up such agreement. Each heir must receive the same monetary value of the estate as if no
agreement was entered into (12)
1.4 Draw up he Liabilities section of the account and the Distribution account . (19)
QUESTION 2 {25]
State the facts that must be mentioned in the following sections of an account:-
2.1 The heading where the deceased was married out of community of property and the parties massed their
estates. (Regulation 5(1)(a)) (11)
2.2 Liquidation Account (Regulation 5(1)c)) (9)
2.3 Executor’s certificate to a First Account (Regulation 5(1)(i)) (5)
QUESTION 3 [30]
The will of Peter Thomas 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
C/ Charles, David and Edward, children of his predeceased son Freddy
D/ Graham adopted son of predeceased daughter Hanna.
He left the following assets
A/ fixed property valued at $800 000
B/ Mercedes 230SE motor vehicle valued at $100 000
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 500 000. on his death, this had to be realized and
distributed between his four children
3.1 Draw up the Distribution Account of personal assets (20)
3.2 Draw up the Fiduciary Asset Account. (10)