WILLS & ESTATES
EXAMINATION PAPER
EXAMINATION CODE: 1-I/2015
DATE:
TIME:
23 April 2015
115 min plus 5 min reading time
MARKS: 100 marks
1.
Answer all questions.
2.
Write only in blue or black ink.
3.
Clearly number each answer with the number of the question.
4.
You need not repeat the question on your answer sheet.
5.
Questions may be answered in any order.
6.
Remember to read the questions carefully before answering them.
7.
Students may use a calculator in the Wills and Estates examination.
8.
This exam consists of five sections:
Section A:
Section B:
Section C:
Section D:
Section E:
Total:
9.
22 marks
12 marks
25 marks
20 marks
21 marks
100 marks
The results will be available on 22 May 2015.
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PAGE 1 OF 8
SECTION A: MULTIPLE CHOICE QUESTIONS
[22 MARKS]
Choose the one correct option for each of the following. Write only the question
number and your chosen answer. For instance, if you think that the correct
answer for number 1 is (A), then write it as 1. (A).
1.
When a person dies leaving a valid will, their estate will be administered
according to the law of:
(A)
(B)
(C)
(D)
2.
James executes his will. His son, age 13, witnesses his will. This is not
valid because:
(A)
(B)
(C)
(D)
3.
(D)
(C)
(D)
Massing operates only if the parties have signed a joint will.
The surviving party must repudiate the benefits of the joint will in
order for massing to take place.
The surviving party will get full ownership of the massed estate if
massing takes place.
All of the above.
The right of a beneficiary under a will to take the benefit which a joint
beneficiary does not take, is called:
(A)
(B)
(C)
(D)
6.
Betty cannot inherit from Lolly, as she is not his surviving spouse.
Betty cannot inherit from Lolly under his will.
Betty cannot inherit from Lolly as she is presumed to have murdered
him.
Betty can inherit from Lolly in terms of his will
Which of the following statements relating to massing is/are correct?
(A)
(B)
5.
any family member of the testator is disqualified from witnessing the
will.
a person under the age of 14 is not a competent witness.
a minor may not witness a will.
only a commissioner of Oaths may witness a will.
Lolly married Betty in 2010 and soon thereafter signed a will, in which he
left his estate to Betty. In January 2011, Lolly divorced Betty. If Lolly died a
year after the divorce, without having changed his will:
(A)
(B)
(C)
4.
testate succession.
intestate succession.
donation mortis succession.
Master’s succession.
habitatio.
arbitration.
accrual.
freedom of testation.
Who of the following executors in general do not have to provide security to
the Master?
(A)
A person exempted in terms of the deceased’s will.
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PAGE 2 OF 8
(B)
(C)
(D)
7.
When a person dies intestate and there is no-one who makes a legitimate
claim to the estate, it will be kept in the Guardian’s Fund before it accrues
to the state. It will accrue to the state after:
(A)
(B)
(C)
(D)
8.
appoint a public defender to administer the estate.
not accept the will as valid.
appoint an executor dative to administer the estate.
refer the matter to arbitration.
When an asset is awarded to a legatee in specie, it means that:
(A)
(B)
(C)
(D)
11.
A warrant of execution.
Letters of executorship.
A letter of authority.
A Master’s certificate.
When a deceased’s will does not nominate an executor, the Master will:
(A)
(B)
(C)
(D)
10.
two months.
six months.
10 years.
30 years.
The Master has appointed Nisha to administer her brother’s estate in terms
of section 18 (3). Which of the following documents will the Master issue to
Nisha?
(A)
(B)
(C)
(D)
9.
a child of the deceased.
a surviving spouse of the deceased.
All of the above.
the asset was sold and the cash is given to the legatee.
the asset is handed to the legatee as left behind by the deceased.
the legatee collects the inheritance in a specially marked envelope.
the asset is sold by public auction.
Assume a deceased dies and R1 million of the primary rebate is used to
reduce the deceased’s dutiable estate to nil. For purposes of estate duty,
the estate of the deceased’s surviving spouse will be entitled to a deduction
of:
(A)
(B)
(C)
(D)
R3,5 million only.
R4,5 million only.
R3,5 million plus R2,5 million.
R 7 million.
[22]
SECTION B: TRUE OR FALSE QUESTIONS
[12 MARKS]
Indicate whether the following statements are true or false.
If you decide that a statement is FALSE, you must explain why.
1.
An heir inherits the assets and debts of the deceased estate.
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PAGE 3 OF 8
2.
If a testator leaves a legacy subject to an illegal condition, the legacy will
not be awarded to the legatee.
3.
A testator may revoke a will by destroying it.
4.
An intestate estate may result in a delay in the appointment of an executor.
5.
The executor may distribute the estate as soon as he or she has
established that the estate is solvent.
6.
The present rate of estate duty is 14% of the dutiable estate.
[12]
SECTION C: WILLS QUESTIONS
[25 MARKS]
QUESTION 1
Read the following will. Then answer questions a) – f) which relate to the will.
LAST WILL & TESTAMENT
I, Manly Smith, declare this to be my last will and testament and hereby revoke all
previous wills or testamentary writings made by me.
1.
I leave my welding equipment to my son, Mark. If he does not want to have it, it
is to go to my good friend Nino Floris.
2.
I leave my art equipment and supplies to my daughter, Zandi.
3.
I leave my farm “Droogtehoogte”in the Karoo to my son, Mark. Upon Mark’s
death, it is to pass on to his children.
4.
I leave my “Sea Vista” apartment in Plettenberg Bay to my daughter, Zandi,
subject to a lifelong usufruct in favour of my friend, Charles Lynn.
5.
The residue of my estate I leave to my brother, Robert Smith.
6.
I appoint as executor of my estate the attorneys’ firm of Khan, Davis and Hart.
In witness whereof I have signed this will on the 1 st day of March 2015 in the presence of
the undersigned witness who in my presence signed this will as witness.
Testator:
__M.S____
As Witness: ________________
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PAGE 4 OF 8
(a)
State two ways in which this will does not comply with the requirements
for the execution of valid will in terms of the Wills Act.
(2)
List the name of one person who is instituted as a legatee.
Give a reason for your answer.
(2)
List the name of one person who is instituted as an heir.
Give a reason for your answer.
(2)
(d)
Identify the fideicommissary and the fiduciary in clause 3 of the will.
(2)
(e)
If Mark needs money after inheriting under his father’s will, can he sell the
farm “Droogtehoogte”? Explain.
(2)
(f)
Two years ago Manly helped his son, Mark, to get out of debt by giving him
a financial benefit of R500 000. Manly hasn’t given Zandi any similar
financial help.
(b)
(c)
Could Mark be asked to bring back this benefit to his father’s deceased
estate before he inherits? Explain.
(2)
[12]
QUESTION 2
Define or explain the following terms:
(a)
a joint will
(2)
(b)
freedom of testation
(2)
(c)
usufruct
(2)
[6]
QUESTION 3
What is the name of the Fund, which controls the cash inheritance of a minor who
inherits in an intestate estate?
[1]
QUESTION 4
Give three ways in which a testator may revoke his will.
[3]
QUESTION 5
Explain how the nasciturus fiction applies when an unborn child is to benefit
under a deceased’s will.
[3]
[25]
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PAGE 5 OF 8
SECTION D: INTESTATE SUCCESSION QUESTIONS
[20 MARKS]
In each of the Questions 1. to 8. below:

Who, if anybody, would inherit in the intestate circumstances outlined?

How much would they inherit?
Please show your calculations.
QUESTION 1
X dies intestate. X had been married out of community of property and dies
leaving a net estate (balance for distribution) of R 400 000 (four hundred
thousand rand). X is survived by his spouse, W, and his father, F.
[2]
QUESTION 2
X dies intestate. X had been married in community of property and dies leaving a
net joint estate (balance for distribution) of R 600 000 (six hundred thousand
rand). X is survived by spouse, W, and his daughter, D. D is the child of X and his
previous girlfriend, G.
[2]
QUESTION 3
X dies intestate. X had been married in community of property and dies leaving a
net joint estate (balance for distribution) of R 2 000 000 (two million). X is survived
by his spouse, W and their son, S. S was adopted by X and W from his natural
parents, A and B.
[2]
QUESTION 4
X dies intestate. X had been unmarried and dies leaving a net estate (balance
for distribution) of R 1 200 000 (one million two hundred thousand rand). X is
survived by his daughter, D, and his grandchildren, GR1 and GR2. Gr1 and GR2
are the children of X’s son, S. S died before X.
[2]
QUESTION 5
X dies intestate. X had been unmarried and dies leaving a net estate (balance
for distribution) of R 800 000 (eight hundred thousand rand). X is survived by his
parents, M and F, his brother, B, and his sister, S
[2]
QUESTION 6
X dies intestate. X had been unmarried and dies leaving a net estate (balance
for distribution) of R 18 000 000 (eighteen million rand). X is survived by his
father, F; and his full brother, B. X also is survived by GR1 and GR2. Gr1and
GR2 are the daughters of his half-sister (the daughter of X’s mother, who has
died, and his stepfather). X is also survived by his half-brother on his mother’s
side, HB (the son of X’s mother, who has died, and his stepfather).
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PAGE 6 OF 8
[4]
QUESTION 7
X dies intestate. X had been unmarried and dies leaving a net estate (balance
for distribution) of R 2 000 000 (two million rand). X is survived by his uncle, U,
and his great grandmother, GGM.
[2]
QUESTION 8
X dies intestate. X had been married according to African Customary Law and
dies leaving a net estate (Balance for Distribution) of R400 000 (four hundred
thousand rand). The deceased is survived his two wives, W1 and W2, and four
children, A, B, C and D.
[2]
QUESTION 9
In which of the above questions does an inheritance “by representation” apply?
In your answer, state the question number above that applies and explain why.
[2]
[20]
SECTION E: ADMINISTATION OF ESTATES QUESTIONS
[21 MARKS]
QUESTION 1
Pumla wants to report the estate of her late husband, Khosi. Pumla and Khosi
lived in Pretoria for the last twelve years, but for the last ten months they have
been living in Cape Town, to be closer to their children. Khosi died leaving an
estate with a gross value of R1500 000. He leaves his wife, three major children
and a few creditors. Khosi died leaving a will, in which he nominated his wife,
Pumla, as his sole heir and executor of his estate.
(a)
Advise Pumla where she should report the estate.
(1)
Pumla wants to administer the estate as simply as possible. She has heard
about a section 18 (3) estate.
(b)
Can section 18 (3) apply to this estate? Give a reason for your answer.
(2)
(c)
List five reporting documents that Pumla should lodge when reporting the
estate.
(5)
Pumla is appointed to administer the estate.
(d)
List the papers, in which Pumla must place the section 29 Notice to
creditors.
(3)
[11]
QUESTION 2
What method of liquidation may apply, if the surviving spouse of the deceased
wants to “buy out” the other heirs of a deceased estate in order to keep the family
home?
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PAGE 7 OF 8
[1]
QUESTION 3
Name the sub-section of the Liquidation and Distribution account that would give
you the following information:
(a)
(b)
(c)
a description and valuation of a house owned the deceased and
awarded to the deceased’s heir. Name two sub-sections in which this
information will appear.
(2)
a claim by a creditor of the deceased for R 25 000 owing. Name one subsection in which this information will appear.
(1)
an award of R50 000 to be paid in cash to a legatee of the deceased.
Name one sub-section in which this information will appear.
(1)
[4]
QUESTION 4
Complete the following sentences by filling in the time period. Write down the
question number and missing word(s) only.
For example 4.(a) three years.
(a)
(b)
The liquidation and distribution account must be lodged with the Master
within a period of _________ from appointment.
(1)
The liquidation and distribution account lie open for inspection for a
period of __ ____.
(1)
[2]
QUESTION 4
For estate duty purposes, set out the general formula for the calculation of the
dutiable amount of an estate.
[3]
[21]
TOTAL: 100 MARKS
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