ADMINISTRATION OF ESTATES TASK 1

ANSWERS
Question 1.1
Both natural guardians are responsible for the maintenance of their minor children. Peggy has therefore a legal
claim against the estate for the deceased’s share of the maintenance. In terms of the decision in Zietsman and
Bastard v the Master, the claim for maintenance must be set off against any inheritance that the minor receives
from the estate. As the minor’s inheritance exceeds the claim for maintenance will then fall away. [7]

Question 1.2
In terms of section 43 a natural guardians may not give security for a claim for maintenance, however as the
maintenance claim falls away there is nothing to prevent Peggy giving security for the minor’s inheritance. [5]

Question 1.3
AGREEMENT
We the undersigned
Sara Smith
Mabel Smith assisted by Sara Smith
Charles Smith assisted by Peggy Smith
And Sally Peters
Agree that the estate of Joe Smith will be redistributed as follows
Sara will receive …………..
………….
Less cash paid in…………… 676 250
Mable will receive cash of … 51 250.
Charles will receive cash of ………51 250.
Sally will receive cash of … 51 250.

Signed at …………………….. this ……………day of ………………….

Sara Smith …………………… Witness ……………………

Sara Smith on behalf of Mable Smith ……………
Peggy Smith on behalf of Charles Smith ………….
Sally Peters …………………. [14] …
…………………

Question 1.4
First and final Liquidation and Distribution account in the estate of the late Joe Smith ID no ……. who died on
……… and surviving spouse Sara Smith Married ICOP Masters no ………….. [6]

Liquidation account
ASSETs
Erf …………. Held under t/d no …….. Valued at 600 000 00
Awarded to ………….. ITO redistribution agreement
………………. Car valued at 80 000.00
Household furniture valued at 20 000.00
Awarded to ………….. ITO redistribution agreement
Shares in ………………… 150 000.00
Awarded to ………….. ITO redistribution agreement
Cash in ……………… 50 000.00 [12]
Liabilities
5 Advertisement for creditors
Government Gazette 20
Namibian 4 230
Advertisement of Account
Government Gazette 20
Namibian 230 5300
6 Masters Fees 2 700
7 Executors remuneration 31 500
VAT 4 725 36 225
8 B Joseph valuation costs 5 ………..
9 Jenkins & co Transfer fees 6 …………
10 Bank charges …………
12 AVBOB Funeral costs 7 10 000
(claim for maintenance falls away as inheritance exceeds claim)
13 Balance for distribution 830 000
900 000 900 000 [10]
Recapitulation statement
Cash available 50 000.00
Liabilities 65 000
Shortfall paid in by ………………. 15 000.00 [2]
65 000 65 000.00

DISTRIBUTION ACCOUNT

Balance for distribution 830 000

To Sara Smith (Jones) surviving spouse
½ by virtue of marriage ICOP 415 000
½ funeral expenses 5 000
½ balance ITO act 205 000
Childs share 51 250 676 250

Award consists of Fixed property 600 000

Movables 100 000
Less cash contribution 23 750 676 250

To Mable Smith Minor born ……….

Id no ………………. 51 250
Award consists of cash

To Charles Smith Minor born ……….

Id no ………………. 51 250
Award consists of cash

To Sally Peters Major 51 250 [22]

Award consists of cash

830 000 830 000

INCOME ACCOUNT
No income collected

FIDUCIARY ASSET ACCOUNT

No fiduciary assets

CERTIFICATE
I ………….. Hereby certify that the above account is true and correct and that there are no further assets or
income to be accounted for.

Signed at ………………. This . day of ………….. 2007 [7]

……………………….
EXECUTOR
Question 2.1
DISTRIBUTION ACCOUNT
Balance for distribution 1 350 000
To Andrew Thomas Major
1/3 in terms of the will 450 000
Award consists of Cash

To Betty Thomas Major

1/3 in terms of the will 450 000
Award consists of Cash

To Charles Thomas major 1/6 ITO will and sec 115(bis) 225 000
Award consists of Cash

To Edward Thomas Major 1/6 ITO will and sec 115(bis) 225 000
Award consists of Cash
1 350 000 1 350 000 [14]

Question 2.2
FIDUCIARY ASSET ACCOUNT

Proceeds of ½ share in Certain piece of land ……………….. 250 000

Masters Fees 441.18
Executors commission 8 750
Vat 1 313 (1312.50) 10 063
Balance for distribution 239 495.82
250 000 250 000

Distribution
Balance for distribution 239 495.82
To Andrew Thomas Major
1/2 in terms of the will 119747.91
Award consists of Cash

To Betty Thomas Major

1/2 in terms of the will 119747.91
Award consists of Cash 239 495.82 239 495.92 [13]