1. Karabo is the 50% shareholder in GHI (Pty) Ltd. The other 50% shareholding is held by the Freddie Trust, a discretionary inter vivos trust. Karabo entered into a reciprocal buy-and-sell agreement with the Freddie Trust, in order to purchase shares in the event of death: the Freddie Trust effected a policy on the life of Karabo in the amount of R5 100000 , and Karabo effected a policy in the amount of R5 100000 on the life of Freddie, being the person nominated as insured life by the Freddie Trust. Karabo pays all the premiums on the policy on Freddie's life, and the Freddie Trust pays all the premiums of the policy on Karabo's life. If Freddie's dies now, his net estate wil amount to R13 500000 . The premiums plus 6% interest thereon from date of payment to date of death paid by Karabo on the policy will be R 100000 . If Karabo dies now, the amount of premiums paid plus 6% interest thereon from date of payment to date of death by the Freddie Trust will also amount to R100 000. If Karabo's dies now, her net estate will amount to R23 500000 . Neither Freddie nor Karabo has a spouse that predeceased either of them. Which one of the following statements is correct? a. If Karabo dies, her executor would not be able to recover any amount of estate duty from the Freddie Trust, and if Freddie dies, his executor would not be able to recover any amount of estate duty from Karabo. b. If Karabo dies, her executor would be able to recover R851063.83 of estate duty from the Freddie Trust, but if Freddie dies, his executor would not be able to recover any amount of estate duty from Karabo. c. If Karabo dies, her executor would not be able to recover any amount of estate duty from the Freddie Trust, but if Freddie dies, his executor would be able to recover R740740.74 of estate duty from Karabo. d. If Karabo dies, her executor would be able to recover R851063.83 of estate duty from the Freddie Trust, and if Freddie dies, his executor would be able to recover R740 740.74 of estate duty from Karabo. e. None of the above