Question
Mali Mengi (aged 57) died in a road accident on 31 December 1999. On 1 May 2000 after his executors had paid all debts, (except
Mali Mengi (aged 57) died in a road accident on 31 December 1999. On 1 May 2000 after his executors had paid all debts, (except for the mortgage on his freehold house and debt to Mkopeshaji) testamentary and funeral expenses, his estate was ascertained as follows: Sh.000 Sh.000 Cash in bank accounts Freehold house Toyota corolla Nissan sunny Television and music system Debt due from Pungulu Furniture and personal effects 10,000 ordinary shares in Cement Ltd. 4,500 ordinary shares in Soko Mjinga Ltd. Sh.800,000 10% Kenya stock Income received to date Interest Dividend from Soko Mjinga Limited Less: Mortgage interest paid 31 March 2000 230 37 267 120 4,250 3,250 360 220 105 40 302 1,200 370 165 147 10,409 Extracts from Mali Mengis will left bequests as follows: 1. To each of my sons, Kikwajuni, Mnazini and Mwembeni Sh.1 million. 2. To my wife Darajani, I leave my furniture, household and personal effects and the residue of my estate 3. To my daughter Nyanjale, my freehold house free of all duties. The house was subject to a mortgage of Sh.1 million earning interest at 24% per annum payable 31 March and 30 September. Duty on the house amounts to Sh.130,000. 4. To my friend Kisitu, one of the motor cars owned by me at the time of my death he may choose. 5. To my friend, Mlungu Sh. 100,000. 6. To some of my sisters-in-law Sh.300,000. 7. To my cousin, Nipa, my painting of the Mausoleum by Kikuvu. 8. To my driver Ndeleva Sh.150,000 9. To my friend Shimba, my holding of Sh.800,000 110%; Kenya stock. Mali Mengi owed Shimba sh.100,000. 10. To my sister Malindi, Sh.300,000. 11. To my personal assistant, Sijapata, half of my holdings in Cement Ltd. 12. To my niece Sinani, 4,000 ordinary shares from my holding of such shares in Cement Ltd. 13. To my nephew Shaibu Sh.200,000 payable out of my shares in Cement Ltd. 14. To my friend Mlungu Sh.50,000 15. To my neighbor Jirani, Sh.50,000. 16. To my sister Dada, Sh.100,000 to establish a business. Mali Mengis executors ascertained that the following beneficiaries were dead: Son Mnazini, died in 1997 leaving a wife and two children Son Mwembeni, died 1998 leaving a wife. Sister Malindi, died in 1996 leaving two daughters. Driver, Ndeleva aged 60 died in the same accident as Mali Mengi. It was impossible to determine the order in which Mali Mengi and Ndeleva died. The executors also advise you that: (i) Kisitu chose the Toyota Corolla. (ii) Mali Mengi sold his painting of the mausoleum, using the proceeds to purchase his holdings in Soko Mjinga Ltd. (iii) There is no such investment as 110% Kenya Stock. The reference in the will to 110% is thought to be a typing error not previously noticed. (iv) Jirani replied in writing that he did not want anything from Mali Mengi because Mali Mengi was a bad neighbour. (v) Mali Mengi paid the Sh.100,000 during his life to his sister Dada to establish her business. Required: (a) A statement showing the distribution of Mali Mengis estate on 1 May 2000. (b)A list of legacies to which the executors should not assent, briefly give reasons for the decision
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started